Question

An effective appraisal of various sources must be instituted by the business to achieve its main objectives.

• A. True
• B. False

Answer 1

The correct option is A

True

An effective appraisal of various sources must be instituted by the business to achieve its main objectives. The selections of a source of business finance depend on factors such as cost, financial strength, risk profile, tax benefits and flexibility of obtaining the funds.