What kinds of financial decisions are taken in financial management?

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Solution

There are 3 kinds of decisions that are taken in financial management -
1. Investment Decision - These are concerned with application of funds in long-term assets of the business.
2. Financing Decision - These are concerned with sources of funds and capital structure decisions.
3. Dividend Decision - These are concerned with the proportion of net income distributable to shareholders.

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Similar questions

Financial management is based on three broad financial decisions. What are these?

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

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