What are the broad areas of financial decision making?
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The three types of financial management decisions are capital budgeting, capital structure, and working capital management. A business transaction that would include capital budgeting is if your company should open another store or not.
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"There are three kinds of financial management decisions. They are as follows,
1) Capital budgeting
2) Capital structure
3) Working capital management.
The most important thing any organisation has to do is to decide if the company should provide funds to any particular project or not. Capital structure is when the organisation has agreed to invest in something.
To make a decision, we should ask ourselves 'why' should we make the decision. Whenever we are making decisions, it is always essential to ask ourselves questions to get a clear idea about what we want to do."
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