Home › CBSE Class 12 (Commerce) › Business Studies › Financial Management › A firm with strong cash flow is better placed to…
A firm with strong cash flow is better placed to use which source?
AEquity capital only
BPreference capital
CRetained earnings only
DFunding through debt
Answer & Solution
Correct answer: D. Funding through debt
Regular interest and repayment need cash, so a stronger cash flow makes debt more viable.
Related questions
Higher inflation affects working capital requirement how?A larger lead time for raw materials means what for working capital?Credit availed from suppliers affects working capital requirement how?A liberal credit policy towards customers raises which requirement?A longer production cycle leads to what working capital need?During a boom, working capital requirement is typically what?Current liabilities are payment obligations due within what period?Which current asset is the most liquid?