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Match List-I with List-II

List-I (Financial Decision)List-II (Factor affecting)
(A) Dividend decision(I) Shareholders' preference
(B) Working Capital Decision(II) Credit availed
(C) Fixed Capital Decision(III) Control considerations
(D) Financing Decision(IV) Financing alternatives

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Dividend decision depends on shareholders' preference for current income versus capital gains. Working capital requirement falls when more trade credit is availed. Fixed capital requirement is affected by financing alternatives such as leasing, which reduces funds needed to purchase assets. Financing decision (debt vs equity) is influenced by control considerations, since fresh equity dilutes control while debt does not. Hence (A)-(I), (B)-(II), (C)-(IV), (D)-(III).

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