Which of the following factors affect the financial decisions? (2024)

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Which of the following factors affect the financial decisions? ›

Internal and external factors are the two types. Internal factors include the nature of the firm, its size, its structure, and the structure of its assets, among others. Economic conditions, tax policy, government regulation, capital structure, and financial markets are all examples of external factors.

Personal circ*mstances that influence financial thinking include family structure, health, career choice, and age. Family structure and health affect income needs and risk tolerance. Career choice affects income and wealth or asset accumulation.

Factors Affecting Financing Decisions

Cost: Financing decisions are based on the allocation of funds and cost-cutting. The cost of fundraising from different sources differs a lot and the most cost-efficient source should be chosen. Risk: The dangers of starting a venture with funds differ based on various sources.

The financing decision is about the amount of finance to be raised from various long-term sources, this determines the various sources of finance, as well as it also provides the cost of each source of finance. The main sources of finance are: Shareholders' Funds. Borrowed Funds.

5 answersFactors that influence personal financial management include financial education in the family, financial literacy, peers, and a hedonism lifestyle.

There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions. In this article, we will discuss the different types of financial decisions that are taken in order to manage a business's finances.

Example 2: Equity Financing - In 2004, Google opted for an Initial Public Offering (IPO) to raise capital. This decision allowed them to garner a massive capital influx to fund their expansion and product development while providing wealth-building opportunities for their employees with a stock ownership plan.

Cash flow position of the business.

A financial decision which is concerned with the amount of finance to be raised from various long term sources of funds like, equity shares, preference shares, debentures, bank loans etc. Is called financing decision. In other words, it is a decision on the 'capital structure' of the company. Was this answer helpful?

What are the factors affecting financial decision-making of students? ›

4 answersFinancial factors have a significant impact on the decision-making process of students. Factors such as financial literacy, financial attitude, financial behavior, and financial experience influence the decisions made by students regarding investments and financial management.

The terms financial issues and financial strain are typically used to describe a difficult or challenging financial situation. Financial hardships can be caused by a variety of situations and behaviors such as job loss, medical bills, a lack of financial planning, poor spending habits, and other life events.