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Financial activity is a company's principal business when financial assets exceed:
A80 per cent
B50 per cent
C60 per cent
D70 per cent
Answer & Solution
Correct answer: B. 50 per cent
1. The test compares financial assets with total assets.
2. Intangible assets are netted off first.
3. The threshold is more than 50 per cent.
_Source: RBI, FAQs on Non-Banking Financial Companies_
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