Assertion(A)- The entrepreneur's job is to ensure the selection of the best overall mix of financing for the enterprise.
Reason(R)- The aim of financing decision is that the Cost of capital and the financial risk stands minimised while return on investment and profitability stands maximized.
Reason(R)- The aim of financing decision is that the Cost of capital and the financial risk stands minimised while return on investment and profitability stands maximized.
Answer & explanation
Correct answer: option 1
The entrepreneur's job is to ensure the selection of the best overall mix of financing for the enterprise so that: a) the cost of capital and the financial risk stands minimized, b) return on investment and profitability stands maximized.