Question

Which sequence correctly orders the seven factors affecting financing decisions?

Options

• Cost → Risk → Floatation → Cash Flow → Fixed Costs → Control → Capital Market

• Cost → Risk → Floatation → Cash Flow → Control → Fixed Costs → Capital Market

• Cost → Risk → Cash Flow → Floatation → Fixed Costs → Control → Capital Market

• Risk → Cost → Floatation → Cash Flow → Fixed Costs → Control → Capital Market

Answer 1

The sequence is Cost, Risk, Floatation, Cash Flow, Fixed Costs, Control, and Capital Market. Together, these represent the seven factors considered when choosing a financing mix.