Question

2. Identify in the following cases factor affecting the choice of capital:

1. Raj an has an option of taking loan from his relatives. These people have

assured him to give loan at a low interest rate. So he decides to use debt as a source of financing his project. Now he goes to different relatives and friends to see if he can get a cheaper source of debt with even lower rate of interest.

​

Answer 1

Answer:

it is achoice of capital which is capital interest