"During annual general meeting of Prakash Ltd CEO, Mr. Rajnesh put the expansion plan for the coming year before shareholders and asked for suitable source of finance to finance manager. Finance manager Mr. Kant proposed issue of debentures than equity with a plan that they can be paid back whenever requirement of funds is over."
In the above paragraph, which component affecting financing decision has been highlighted?
Explain the component?

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Solution

Flexibility

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Similar questions

"During annual general meeting of Prakash Ltd. Ceo, Mr. Rajesh put the expansion plan for the coming year before shareholders and asked for a suitable source of finance to finance manger. Finance manager Mr. Kant proposed the issue of debentures than equity with a plan that they can be paid back whenever requirement of funds is over." In the above paragraph, which component affecting financing decision has been highlight?

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