Which statement describes the purpose of the finance analytical work in decision-making?

• A. Marketing the project
• B. Determine whether to borrow money, issue stock, or expand facilities
• C. Hire internal staff
• D. Design IT systems

Answer: (B)

Finance analysis in decision-making focuses on how to fund a project or growth and what mix of financing will maximize value. It involves estimating capital needs, evaluating costs of different funding sources, and weighing risk and impact on cash flow and leverage. When a company considers expansion, the key question is how to finance it—borrowing, issuing stock, or using internal funds—and what that means for cost of capital and long‑term value. This makes the statement about determining whether to borrow money, issue stock, or expand facilities the best description of the purpose of finance analytical work. The other options relate to marketing, human resources, or IT design, not financing decisions.