The basic factors that determine how a firm is financed include the following: the firm's past economic performance, the nature of its assets, the maturity of the firm, and the personal preferences of owner(s) with respect to the marketing mix.

Question

Quizplus · Accepted Answer

The statement is partially correct, factors such as economic performance, asset nature, and firm maturity do play a vital role in determining how a firm is financed. However, the personal preferences of the owner(s) with regards to the marketing mix do not influence the firm's financing decisions.

The Basic Factors That Determine How a Firm Is Financed