BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial decision
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Investment Decision
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Dividend decision
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Working capital decision
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Detailed explanation-1: -What are Financing Decisions? Financing decisions refer to the decisions that companies need to take regarding what proportion of equity and debt capital to have in their capital structure. This plays a very important role vis-a-vis financing its assets, investment-related decisions, and shareholder value creation.
Detailed explanation-2: -The primary goal of both investment and financing decisions is to maximize shareholder value. Investment decisions revolve around how to best allocate capital to maximize their value. Financing decisions revolve around how to pay for investments and expenses. Companies can use existing capital, borrow, or sell equity.
Detailed explanation-3: -These are also known as Capital Budgeting Decisions. • A company’s assets and resources are rare and must be put to their. utmost utilization. • A firm should pick where to invest in order to gain the highest. conceivable returns.