Types of Financial Decisions
The management of an organization takes several financial decisions to maximize its profits. The finance function deals with three main kinds of decisions are:
Table of Content
- Investment Decision
- Financing Decision
- Dividend Decision
Types of Financial Decisions
What is Financial Decision?
The decisions regarding the financial matters of any organization are known as Financial Decisions. In simple terms, it refers to the decision regarding the investment of the funds of the business in various assets. Financial management focuses on providing solutions to three significant problems concerned with the firm’s financial operations corresponding to the three questions of investment, financing, and dividend decision. In financial terms, financial decisions refer to finding the best solutions to financial or investment problems from various alternatives.