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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why is procurement of funds decision considered critical?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the responsibility of the financial manager in the allocation of fund decisions?

View solution

Q. How does financial accounting differ from financial management in terms of focus?

View solution

Q. What is the basis of financial accounting?

View solution

Q. What does financial management primarily involve?

View solution

Q. What qualifications are necessary for carrying out the role and responsibility of a financial manager?

View solution

Q. What does financial analysis mainly include?

View solution

Q. What do investment decisions determine?

View solution

Q. What do financing decisions relate to?

View solution

Q. What is the primary consideration of financial decisions?

View solution

Q. What is the definition of the time value of money?

View solution

Q. What are the reasons for a rupee today being more valuable than a rupee after one year?

View solution

Q. What does the financial management function in a firm comprise?

View solution

Q. Which of the following is a financial management function?

View solution

Q. What is the ultimate objective of Financial Management?

View solution

Q. Financial Management is based on which of the following principles? Choose an appropriate answer.

View solution

Q. Which of the following financial decisions determine how costly funds are allotted and committed to various projects and plans?

View solution

Q. _______________________ means that worth or value of a rupee received today is different from the worth of a rupee to be received in future.

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

IC 14 Regulations of Insurance Business

Prepare for the IC 14 Regulations of Insurance Business exam with our focused set of...

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Sociology

Gain insights into human behavior and society with our Sociology category. Explore...