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CBSE Class 12 Business Studies 2026 All Sets Solved Paper
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Question : 8 of 21
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Which of the following is not a factor affecting capital structure of a company ?
Solution:
While a company considers different sources of finance, ”Financing alternatives” is a broad term for the choices themselves rather than a specific factor or constraint that dictates the ratio of debt to equity. Factors like Cash Flow (ability to pay debt) and ROI (profitability relative to interest) are specific variables that force a decision one way or the other.
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