Business Studies

Decisions for raising funds from long-term sources are called ___________.


ANSWER

capital structure decision


SOLUTION
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.
Capital structure refers to the mix between owners and borrowed funds.
Decisions for raising funds from long-term sources are part of capital structure decisions.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 199
Enroll Now For FREE

Realted Questions

Q1 TRUE/FALSE Medium
Short-term planning covers short-term financial plan called budget.
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
Which one of the statements applies only to Preference Shareholders?
  • A. Shareholders risk the loss of investment.
  • B. Shareholders bear the risk of no dividends in the year of losses.
  • C. Shareholders usually have the right to vote.
  • D. Dividends are usually a fixed amount in every financial year.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
How are shareholders likely to gain with the loan component in the capital structure?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
On basis of time period, the different sources of funds can be categorized into _____ categories.
  • A. Two
  • B. Three
  • C. Four
  • D. Five

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Which of the following feature(s) of preference shares are similar to those of equity shares?
  • A. Redeemability
  • B. Voting rights
  • C. Change over assets
  • D. Both (B) and (C) above
  • E. No obligation to pay dividend

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer