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Subjects

Business Studies

Financing decision

In Class 12 Business Studies, the topic Financing Decision explains how a business chooses the sources of funds needed for investment and operations. Students study the role of equity shares, preference shares, retained earnings, debentures and loans in forming a company’s capital structure. They also examine factors such as the cost of finance, financial risk, cash-flow position, control over management, flexibility, tax benefits and the purpose and duration of funds. The topic connects these choices with sound financial management.

Medium · Level 1 · 1 questions

Practice questions

01What should an entrepreneur check first before taking a loan?

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