Question

Which of the following are factors affecting the choice of source of funds?

• A. Cost
• B. Purpose and time period
• C. Risk profile
• D. All of the above

Answer 1

Answer: (D)

All of the above

A business cannot function smoothly unless it has adequate funds are made available to them. The need of funds arises from the stage when an entrepreneur decides to start a business. The factors affecting the choice of sources of funds are the cost that it will incur to raise funds, the purpose and the duration for which the funds are to be raised and the risk that a company has to bear to raise those funds.