which of the following is included in financial decision making?
(a) investment decision
(b) financial decision
(c) dividend decision
(d) all of these
Answers
Answer:
Investment Decision is the answer
Explanation:
Answer:
The correct answer to this question is all of these.
Explanation:
Given - Financial decision-making.
To find - which of the following is included in financial decision making?
a) investment decision (b) financial decision (c) dividend decision
(d) all of these
Financial decisions – choosing between stock and loan money, as well as associated costs – are critical components of the financial decision-making process.
The investment decision, Financial decision, and Dividend decision are included in financial decision making.
1. Investment Decision: An investment decision is a financial decision that deals with how a company's cash is invested in various assets. A long-term or short-term investment decision can be made.
2. Financing Decision: A financial decision including the amount of money to be raised from various long-term funding sources such as equity shares, preference shares, debentures, bank loans, and so on. This is referred to as a funding decision. In other words, it is a decision on the company's 'capital structure.'
3. Dividend Decision: This is the third and last financial choice, and it concerns dividend policy. Dividends are a portion of profits that can be distributed to equity shareholders. Dividend payments should be examined in light of a company's financial decisions. When it comes to dealing with a firm's net profits, there are two options: distribute profits as dividends to regular shareholders if there is no need to retain earnings, or keep them in the firm if they are required for funding any business activity.
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