Professional Documents
Culture Documents
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Investment Decision
It refers to acceptance/ rejection of long-term investment proposal.
Proposal related to acquisition, modification and replacement of assets
are long-term investment proposal. Long-term refers to the time horizon
of more than one year. The long term assets like plants, machines,
equipments, land, buildings etc
Financing Decision
Is concerned with the collection of the fund. The financial manager
needs to decide about the appropriate amount and sources of the fund.
Dividend Decision
The net income after paying preference dividend belongs to the equity
shareholders. However, there is no legal obligation to pay dividend to
the equity shareholders. The dividend decision is the allocation of net
profit after tax and preference dividend to equity shareholders.
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Working Capital Decision
Working capital decision refers to the commitment of funds to current
such as inventory, bills receivable, cash balance, prepaid, etc. this
decision is known as current assets management also..
Routine Finance Decision
It is also the incidental finance function, which is performed to execute
the executive finance effectively. Routine finance function does not
able to make profit, they will always try to make it large as possible. All
other objectives are subjected to this primary objective.
b.
c.
d.
Though not perfect, profit is the most efficient and reliable measure
of the efficiency of a firm
e.
a.
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e.