Business Finance Deals With Which Decisions

The risk is higher in the case of debt as compared to the equity.

Business finance deals with which decisions. There are four main financial decisions 1. Broadly speaking a correct ratio of an equity and debt has to be maintained. A general manager evaluating the feasibility of launching a new product line will need finance department information about how the business will find the funds for this venture.

Capital budgeting or long term investment decision 2. Hence the finance manager is required to access the profitability or return of various investment decisions and decide a policy which ensures high liquidity profitably and sound health of an. Long term finance decisions 2.

The types of financial decisions can classified under 1. Factors affecting financing decisions. Financial decision is important to make wise decisions about when where and how should a business acquire fund.

In principle a finance manager is held responsible to handle all. Meaning of business finance. It is in such an environment that finance manager works as a part of total management.

Wheeler meaning of business finance includes those business activities that are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise. Business leaders make thousands of decisions each year and sometimes a single decision can have a powerful far reaching impact. But finance manager prefers a mix of both types.

Consequently this relates to the composition of various securities. While taking the financial decisions the finance manager has to take the following points into consideration. Financial decision is yet another important function which a financial manger must perform.