Question

Which set lists sources of finance considered in a financing decision?

Options

• Cost, risk, control, and cash-flow position

• Equity, debt, preference share capital, and retained earnings

• Rent, insurance, salaries, and brokerage

• Interest, principal, underwriting fees, and investor sentiment

Answer 1

Sources of finance include equity, debt, preference share capital, and retained earnings. A financing decision determines which sources to use and in what proportions.