The decision about the quantum of finance to be raised from various long term sources is termed as :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Financing Decision
Option (1) Financial Decision — Incorrect. This is a general name for any decision about money. It is not the name of this decision.
Option (2) Financial Planning Decision — Incorrect. Financial planning prepares a plan to make sure enough funds are available at the right time. It is not the decision about raising long-term funds.
Option (3) Capital Structure Decision — Incorrect. Capital structure is the mix of owners’ funds and borrowed funds. It is the result of financing decisions, but the words in the question define the financing decision.
Option (4) Financing Decision — Correct. The financing decision “is about the quantum of finance to be raised from various long-term sources”. Quantum means amount. In simple words, it decides how much money to raise and from which source.
NCERT (2026-27 Edition): “Financing Decision This decision is about the quantum of finance to be raised from various long-term sources. Short-term sources are studied under the ‘working capital management’.” “…Financing decision is, thus, concerned with the decisions about how much to be raised from which source. …” “Capital Structure … Capital structure refers to the mix between owners and borrowed funds.” |