Question

the source of permanent obligation on the company to pay interest every year irrespective of the profit

Answer 1

The source of permanent obligation on the company to pay interest every year irrespective of the profit is as follows:

• Investment decision - This can be short-term and long-term. Decisions of capital  budget includes long-term investment in huge amount. Decisions about inventory, cash levels and receivables are included in short-term investment.
• Financing decision - The decision on the company's 'capital structure' is called financing decision.
• Dividend decision - This involves a part of profit distributed in shareholders and the part maintained for future casualties.