BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Factors affecting financing decision is/are
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Cost
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Risk
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Cash flow position
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All of the above
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Explanation:
Detailed explanation-1: -These choices can be as varied as the acquisition of resources, financing and raising assets, everyday capital, and expenditure management.
Detailed explanation-2: -It refers to cost involved in issue of securities such as broker’s commission, underwriters fees, expenses on prospectus, etc. Firm prefers securities which involve least floatation cost.
Detailed explanation-3: -The financial strength i.e. sound financial position to repay the principal amount and interest on the borrowed amount is a major factor for this choice.
There is 1 question to complete.