CBSE Class 12-commerce Answered
The decision in financial management which determines the proportion between debt and equity is known as:
a)Financing decision b) Operating decision c) Capital decisions d) Dividend decision.
Asked by navyanshastry | 04 Apr, 2020, 08:31: PM
Expert Answer
In financial management, the type of financial decision which is concerned with the amount of finance to be raised from the various debt and equity sources of funds like equity shares, preference shares, debentures, bank loan etc. is called financing decision. It also involves determining the proportion in which the required amount of funds can be raised from such sources and therefore it is also termed as Capital Structure Decision.
Accordingly, option (a) Financing Decision is the correct answer, which determines the proportion between debt and equity to raise the required amount of funds.
Answered by Surabhi Gawade | 07 Apr, 2020, 11:28: AM
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