Name the decision which affects both the profitability and the financial risk.

(a) Capital budgeting decision

(b) All of the above

(c) Capital structure decision

(d) Financial planning decision

Answer (c) Capital structure decision

Explanation: Capital structure decision is concerned with the particular blend of equity and debt used to back an organisation’s resources and operational activities. According to a corporate point of view, equity addresses a more expensive, super durable wellspring of capital with more prominent monetary adaptability.

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