BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Who is the one responsible in making investment, financial, and dividend policy-making decisions of a firm?
A
Creditors
B
Finance manager
C
Employees
D
Supplier
Explanation: 

Detailed explanation-1: -There are three decisions that financial managers have to take: Investment Decision. Financing Decision and. Dividend Decision.

Detailed explanation-2: -The Financial Manager of a company must have the proper ability and training to address key financial management decisions. The main aspects of the financial decision-making process relate to investments, financing dividends and asset management.

Detailed explanation-3: -Financial managers generally oversee the financial health of an organization and help ensure its continued viability. They supervise important functions, such as monitoring cash flow, determining profitability, managing expenses and producing accurate financial information.

Detailed explanation-4: -The Goal of the Financial Manager. How can financial managers make wise planning, investment, and financing decisions? The main goal of the financial manager is to maximize the value of the firm to its owners.

Detailed explanation-5: -It’s the financial manager’s responsibility to decide a optimum dividend policy which maximizes the market value of the firm. Hence an optimum dividend payout ratio is calculated. It is a common practice to pay regular dividends in case of profitability Another way is to issue bonus shares to existing shareholders.

There is 1 question to complete.