Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
Which of the following decision determines the overall cost of capital and the financial risk of the enterprise?
Options:
Working capital decision
Investment Decision
Financing decision
Capital budgeting decision
Correct Answer:
Financing decision
Explanation:
Financing decision is, thus, concerned with the decisions about how much to be raised from which source. This decision determines the overall cost of capital and the financial risk of the enterprise.