Financial Management-Financial Decisions (CBSE Class-12 Business-Studies): Questions 9 - 9 of 9
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Question number: 9
» Financial Management » Financial Decisions
Appeared in Year: 2012
Describe in Detail
Explain the following as factors affecting financing decision:
(2) Cash flow position of business
(3) Level of fixed operating cost and
(4) Control considerations.
(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) …