This decision is about the quantum of finance to be raised from various long term sources ........

This decision is about the quantum of finance to be raised from various long-term sources.

Investment decision

Financing decision

Dividend decision

Capital budgeting decision

- Option 1: Investment decision

- Involves allocating funds to different assets or projects.

- Focuses on long-term growth and asset generation.

- Option 2: Financing decision

- Deals with determining how much money to raise from various long-term sources.

- Includes decisions on borrowing and equity issuance.

- Option 3: Dividend decision

- Concerns the portion of earnings to pay out to shareholders as dividends.

- Balances profit reinvestment and shareholder returns.

- Option 4: Capital budgeting decision

- Relates to choosing which long-term projects to invest in.

- Examines cash flow and return potential.

Option 2: Financing decision is the correct choice.

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