Question : It helps in fixing the ratio between debt and equity in the long term finance. Which financial activity is highlighted in the given statement?
Option 1: Amount of long term and short term financing
Option 2: Quantum of current assets
Option 3: Breakup of long term financing into debt and equity.
Option 4: Size as well as composition of fixed assets.
Correct Answer: Breakup of long term financing into debt and equity.
Solution :
Financial management decision helps in fixing the ratio between debt and equity in the total long term finance.
Hence,option C is correct.




