Question

Why is procurement of funds decision considered critical?

a.

Because it involves budgeting

b.

Because it requires the consideration of various factors such as sources of funds, terms and conditions of repayment, cost of capital, and control

c.

Because it is based on Cash Flow analysis

d.

Because it is the only part of financial management

Posted under IC 89 Management Accounting

Answer: (b).Because it requires the consideration of various factors such as sources of funds, terms and conditions of repayment, cost of capital, and control Explanation:Procurement of funds decision is considered critical as it requires consideration of various factors such as sources of funds, terms and conditions of repayment, cost of capital, and control.

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Q. Why is procurement of funds decision considered critical?
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