Business Studies

Business Finance

Easy

The Financing Decision is:

Related to how the firm's funds are invested in different assets

The decision about the quantum of finance to be raised from various sources

Related to how and what portion of profit is distributed to shareholders

Related to the selection of best financing alternative or best investment alternative

✅ Correct Option: 2

The financing decision concerns how much finance is to be raised and from which sources, i.e., the mix of debt and equity. Investment of funds in assets is the investment decision, and distribution of profit is the dividend decision. So option 2 correctly describes the financing decision.

2023: 29 May Shift 2

Match List I with List II

LIST I		LIST II
A. Convenience products	I.	Consumed in one or few uses
B. Shopping products	II.	Brand loyality of the highest order
C. Speciality products	III.	Purchased frequently
D. Non durable products	IV.	Buyers devote considerable time

Choose the correct answer from the options given below:

2026: 29 May Shift 2

"Interest coverage ratio" can be computed as:

2026: 6 June Shift 1

A higher Debt Service Coverage Ratio (DSCR) indicates

2026: 29 May Shift 1

Why might a company prefer debt over equity for financing?

2025: 24 May Shift 1

Arrange the following steps involved in the process of financial planning in logical sequence.

(A) Sales forecast is made

(B) Requirement of fixed capital and working capital is estimated

(D) Sources of finance are identified

Choose the correct answer from the options given below:

2026: 11 May Shift 2

The correct factor affecting Dividend decision is:

The Financing Decision is:

Solution

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