Management wishes to obtain financing.For each attribute/characteristic listed in 1 through 5, determine which type of financing it describes from management's perspective .
-Cash flows are discretionary

Question

Quizplus · Accepted Answer

Cash flows being discretionary is a characteristic of equity financing because in equity financing, dividends are paid at the discretion of the company's management, unlike debt financing where interest payments are obligatory.

Management Wishes to Obtain Financing