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| Name the decision which affects both the profitability and the financial risk. |
Financial planning decision Capital budgeting decision Capital structure decision All of the above |
| Capital structure decision |
| One of the important decisions under financial management relates to the financing pattern or the proportion of the use of different sources in raising funds. On the basis of ownership, the sources of business finance can be broadly classified into two categories viz., ‘owners funds’ and ‘borrowed funds’. Capital structure refers to the mix between owners and borrowed funds. It affects both profitability and financial risk. |
