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Ananta Ltd. is a company dealing in ready-made garments from last many years. Recently the profit of the company have started increasing. The finance manager decided to retain the profit instead of distributing it among shareholders.
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Question : 18
Total: 19
Identify and give the meaning of the financial decision suggested by the finance manager in the above case.
Solution:
The Financial decision suggested by the finance manager is the Financing Decision.
It refers to the decisions regarding the identification of various sources of funds (as debt and equity) and deciding the best combination among them. These decisions are taken based on the risk and profitability of various alternatives.
It refers to the decisions regarding the identification of various sources of funds (as debt and equity) and deciding the best combination among them. These decisions are taken based on the risk and profitability of various alternatives.
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