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Business Studies · 2026 · 1 mark
CBSE 2026 · Region 4 · Set 1 · Q8
Read the following statements : Assertion (A) and Reason (R).
Assertion (A) : The cost of debt is higher than the cost of equity for a
firm.
Reason (R) : The lender’s risk is lower than the equity shareholder’s
risk, since the lender earns an assured return and
repayment of capital.
Choose the correct alternative from the options given below :
Official answer
From CBSE’s own marking scheme for this paper.
(D)
Assertion (A) is false, but Reason (R) is true.
Marking-scheme solution
(D)
Assertion (A) is false, but Reason (R) is true.
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CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.