CORPORATE FINANCE RIDDLES

A

10

I reduce profit though no cash leaves the firm.
Accountants love me, investors question me.
What am I?

Depreciation.

(The Invisible Expense)

10

Without me, profits mean nothing and salaries stop.
Startups burn me quickly.
What am I?

Cash Flow

10

When I rise too fast, investors cheer.
But sometimes I rise only because fewer shares exist, not because the company improved.
What am I?

Earnings Per Share (EPS)

10

The Recession Predictor

When I invert, economists panic and markets become nervous.
What am I?

Yield Curve

10

My ticker is DMART.
I became one of India’s most valued retail businesses through discount shopping.
Who am I?

Avenue Supermarts

(The ticker name DMART belongs to the retail chain D-Mart, but the actual company listed on the stock exchange is Avenue Supermarts.) 

B

10

I legally reduce taxable income through business spending.
Companies track me carefully.
What am I?

Deduction / Business Expense

10

When one company buys another for more than book value, I appear.
Auditors check me every year.
What am I?

Goodwill

10

I look harmless during growth.
But when interest rates rise, I become deadly overnight.
What am I?

Floating Rate Debt

10

I quietly reduces real returns every year even when investments grow.
What am I?

Inflation

10

My ticker is IRCTC.
Millions use my platform daily, especially while traveling across India.
Food, tickets, and tourism are part of my business.
Who am I?

Indian Railway Catering and Tourism Corporation

(IRCTC handles railway ticket booking, catering, and tourism services for Indian Railways.  )

C

10

When business is good, I multiply profits.
When business is bad, I multiply losses.
CFOs use me carefully.
What am I?

 

Financial Leverage

(The Double-Edged Sword ) 

10

I allow investors to profit even when prices fall.
Beginners fear me.
What am I?

 

Short Selling

10

I rise when fear rises.
Traders hate me, but analysts watch me closely.
What am I?

Volatility

10

Revenue is rising, profit is rising, but cash is falling.
What is most likely increasing?

Accounts Receivable / Working Capital

10

I help companies grow, but I am not an employee.
Startups search for me before launching big ideas.
Who am I?

Venture Capital

D

10

Companies use me to grow rapidly, but too much of me may lead to bankruptcy.
Banks monitor me constantly.
What am I?

 

Debt

10

If I fall below 1, lenders become nervous about repayment ability.
What ratio am I?

Interest Coverage Ratio

10

I make companies appear profitable while hiding operational weakness.
Remove me, and the business may collapse.
What am I?

Non-Operating Income 

(The Corporate Mask )

10

The higher I climb, the more dangerous the fall becomes.
Companies chase me endlessly, investors worship me, and crashes erase me overnight.
What am I?

Market Capitalization / Stock Price

10

I protect businesses from unexpected financial losses.
Companies pay for me every year hoping never to use me.
Who am I?

Insurance

E

10

I happen when more shares are issued, reducing ownership percentage without selling anything.
What am I?

 

Dilution

10

The more people trust me, the less physical backing I may actually have ,  economies depend on me.
What am I?

 

Money / Fiat Currency

10

The Startup Illusion

Founders celebrate when I increase, even though the company may still lose money every day.
What am I?

Valuation

10

My ticker is NAUKRI.
Job seekers across India know my platform very well, though that is not my official company name.
Who am I?

Info Edge

10

I am money kept aside for future uncertainty or emergencies.
Strong companies maintain me carefully.
Who am I?

Reserve Fund