Question

Explain the factors to be kept in mind before selecting a source of finance.​

Answer 1

Answer:

please mark as brainliest

Answer 2

Some important Factors to be kept in mind before selecting a source of finance:

Explanation:

Some important factors to be considered while choosing the source of finance:

Financial strength , stability , cost , reliability of the financing institution

• Keep in mind there are 2 types of cost one is Cost Procurement of funds  and the other is Cost of utilizing the funds paid by the finance  . It is important to take care of these two costs while selecting the source of finance
• Amount of money you require and for which length of time
• Market status , ability , financial strength of the business institution
• Current level of the organisation and its legal status .
• Evaluate the business source in the terms of risk involved.
• Select the business source to extent to which the firm can take control over the assets.