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Question

This decision is about the quantum of finance to be raised from various long-term sources:


A

Dividend decision

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B

Financing decision

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C

Capital budgeting decision

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D

Investment decision

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Solution

The correct option is B

Financing decision


Answer (b) Financing decision

Explanation: The financing decision is a pivotal choice that will be made by the management, that the choice is about the financing blend of an association. The financing decision is centered around the borrowings and allotment of funds needed for the investment decisions of the firm. All financing decisions related to the organisation’s investments are always based on long-term resources that are available to the management.


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