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

Question

Quizplus · Accepted Answer

While past economic performance and the nature of assets are important factors in determining how a firm is financed, the personal preferences of the owner(s) with respect to the marketing mix are not typically considered in financing decisions. Other factors, such as market conditions, industry trends, and availability of financing options, also play a role in determining a firm's financing strategy.

The Basic Factors That Determine How a Firm Is Financed