Identify the decision taken in financial management, which affects the liquidity as well as the profitability of a business.

Investment decision

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Financing decision

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Dividend decision

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All of the above

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Solution

The correct option is B
Financing decision

Financing decision: is all about the quantum of finance to be raised from various long-term sources.

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Similar questions

How does working capital affect both the liquidity as well as profitability of a business?

How does working capital affect both the liquidity as well as the profitability of a business?

Decisions which can be taken by a manager in a financial plan:

1. Decisions regarding the issue of equity and preference shares

2. Decisions regarding ploughing back of profits

3. Helps in avoiding business shocks and surprises

4. Helps in coordination of other business

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