Financial Management (CBSE Class-12 Business-Studies): Questions 37 - 37 of 37

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Question number: 37

» Financial Management » Financial Decisions

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the following as factors affecting financing decision:

(1) Cost

(2) Cash flow position of business

(3) Level of fixed operating cost and

(4) Control considerations.

Explanation

(1) Cost: - Different sources of funds involve different costs. So, while considering financial decision it prefer sources that include minimum cost.

(2) Cash flow position of business: - Cash flows are integral part of an organization. Organization with stronger cash flow position easily opts for borrowed funds.

(3) Level… (51 more words) …

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