Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

The decision about the quantum of finance to be raised from various long term sources is termed as :

Options:

Financial Decision

Financial Planning Decision

Capital Structure Decision

Financing Decision

Correct Answer:

Financing Decision

Explanation:

The correct answer is option (4) : Financing Decision

1. Financial Decision: This refers to the process of making decisions related to the financial aspects of a business, such as investment decisions, financing decisions, and dividend decisions. It involves analyzing the financial information of a company and making decisions that will maximize the value of the company.

2 Financial Planning Decision: This refers to the process of creating a financial plan for a business. It involves setting financial goals, creating a budget, and developing strategies to achieve those goals. Financial planning decisions are important for the long-term success of a business.

3. Capital Structure Decision: This refers to the decision about the mix of debt and equity that a company will use to finance its operations. It involves determining the optimal capital structure that will maximize the value of the company. The capital structure decision is important because it affects the cost of capital and the risk profile of the company.

4. Financing Decision: This refers to the decision about the sources of finance that a company will use to raise funds. It involves identifying the available sources of finance, such as equity, debt, and retained earnings, and deciding on the proportion of funds to be raised from each source. The financing decision is important because it affects the cost of capital and the risk profile of the company.