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CS Executive · Corporate Accounting and Financial Management · Introduction to Financial Management

Which of the following is primarily a function of the finance manager in relation to the financing decision?

Determining the appropriate mix of debt and equity is a finance manager's function under the financing decision. It deals with sources of funds and capital structure, whereas product pricing, hiring workers and branding belong to marketing or human resource management.

  1. ADetermining the appropriate mix of debt and equity to raise fundsCorrect
  2. BFixing the selling price of the firm's products
  3. CRecruiting and training production workers
  4. DDeciding the brand name for a new product

Explanation

The financing decision concerns the sources of funds and the capital structure, i.e. the debt-equity mix. Pricing, recruitment and branding fall under marketing and human resource functions, not core finance.

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