{"id":33705,"date":"2024-04-15T09:20:32","date_gmt":"2024-04-15T09:20:32","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33705"},"modified":"2024-04-15T09:20:32","modified_gmt":"2024-04-15T09:20:32","slug":"match-the-items-of-list-i-with-the-items-of-list-ii-and-select-the-correct-answer-list-i-list-ii-a-liquidity-risk-1-risk-related-to-purchasing-power-of-income-b-business-risk-2-risk-related-to-fi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/match-the-items-of-list-i-with-the-items-of-list-ii-and-select-the-correct-answer-list-i-list-ii-a-liquidity-risk-1-risk-related-to-purchasing-power-of-income-b-business-risk-2-risk-related-to-fi\/","title":{"rendered":"Match the items of List-I with the items of List-II and select the correct answer: List-I List-II a. Liquidity risk 1. Risk related to purchasing power of income b. Business risk 2. Risk related to firm&#8217;s capital structure c. Financial risk 3. Risk related to inability to pay its dues on time d. Inflation risk 4. Risk related to fluctuation in profits"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9a2f0b8d01f\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    a-2, b-3, c-4, d-1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    a-1, b-4, c-3, d-2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    a-3, b-2, c-4, d-1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    a-3, b-4, c-2, d-1                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. a-3, b-2, c-4, d-1<\/strong><\/p>\n<ul>\n<li><strong>Liquidity risk<\/strong> is the risk that a company will not be able to meet its short-term obligations. This can happen <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> if the company does not have enough cash on hand or if it is unable to sell its assets quickly enough.<\/li>\n<li><strong>Business risk<\/strong> is the risk that a company&#8217;s profits will fluctuate due to changes in the economy, industry, or competition. This risk is inherent in all businesses, and it cannot be eliminated completely.<\/li>\n<li><strong>Financial risk<\/strong> is the risk that a company will not be able to meet its long-term obligations. This can happen if the company takes on too much debt or if its assets are not worth enough to cover its liabilities.<\/li>\n<li><strong>Inflation risk<\/strong> is the risk that the purchasing power of a company&#8217;s income will decline due to inflation. This risk is particularly high for companies that have a lot of debt, as the interest payments on their debt will increase in real terms.<\/li>\n<\/ul>\n<p>Here is <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>Option A<\/strong> is incorrect because it matches liquidity risk with inflation risk. Inflation risk is the risk that the purchasing power of a company&#8217;s income will decline due to inflation, while liquidity risk is the risk that a company will not be able to meet its short-term obligations.<\/li>\n<li><strong>Option B<\/strong> is incorrect because it matches business risk with financial risk. Business risk is the risk that a company&#8217;s profits will fluctuate due to changes in the economy, industry, or competition, while financial risk is the risk that a company will not be able to meet its long-term obligations.<\/li>\n<li><strong>Option C<\/strong> is correct because it matches each item in List-I with the correct item in List-II.<\/li>\n<li><strong>Option D<\/strong> is incorrect because it matches liquidity risk with financial risk. Liquidity risk is the risk that a company will not be able to meet its short-term obligations, while financial risk is the risk that a company will not be able to meet its long-term obligations.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Match the items of List-I with the items of List-II and select the correct answer: List-I List-II a. Liquidity risk 1. Risk related to purchasing power of income b. Business risk 2. Risk related to firm&#039;s capital structure c. Financial risk 3. Risk related to inability to pay its dues on time d. Inflation risk 4. 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