Match the words with the term.
-What type of decision is made when a company decides whether to arrange a mortgage, sell bonds, or issue shares?
A) a financing decision using internal financing
B) an operating decision using internal financing
C) a financing decision using external financing
D) an operating decision using external financing

Question

Quizplus · Accepted Answer

This is a financing decision because it involves choosing the method of raising funds for the company's operations or expansion. It is considered using external financing because the company is looking at options like mortgages, selling bonds, or issuing shares to obtain funds from outside sources, rather than using its own retained earnings or internal resources.

Match the Words with the Term