Financial decision involves ___________.

investment, financing and dividend decisions

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investment, financing and sales decisions

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financing, dividend and cash decisions

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None of the above

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Solution

The correct option is A investment, financing and dividend decisions
Investment decision- It helps in determine how scarce resources are committed to projects.
Financing decision- Acquiring finance to meet finance objectives & seeing that working capital is effectively manages.
Dividend decision- Determination of quantum of profits to be distributed.

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Similar questions

There are major decisions which an organisation has to take in respect of financial management. they are as follow:

1. Investment decision

2. Financing decision

3. Dividend decision

A decision to acquire a new and modern plant to upgrade an old one is a

(a) financing decision

(b) working capital decision

(d) None of the above

Q. Financial Management is concerned with -
A. Investment decisions
B. Labour turnover decisions
C. Financing decisions
D. Personnel policy decisions
E. Dividend decisions
Select the correct answer from the options given below.

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

Q. Give the meaning of 'Investment ' and 'Financing' decision of financial management.

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