What are the main decisions in finance?
Mia Phillips
Updated on February 13, 2026
There are four main financial decisions- Capital Budgeting or Long term Investment decision (Application of funds), Capital Structure or Financing decision (Procurement of funds), Dividend decision (Distribution of funds) and Working Capital Management Decision in order to accomplish goal of the firm viz., to maximize …
What are the three key financial management decisions?
The Financial Management can be broken down in to three major decisions or functions of finance. They are: (i) the investment decision, (ii) the financing decision and (iii) the dividend policy decision. The investment decision relates to the selection of assets in which funds will be invested by a firm.
What are the three main area of decision making in finance?
There are three broad areas of financial decision making – capital budgeting, capital structure and working capital management.
What are the three financial decisions?
There are three decisions that financial managers have to take:
- Investment Decision.
- Financing Decision and.
- Dividend Decision.
What are key issues in financial decision making?
The key aspects of financial decision making relate to financing, investment, dividends and working capital management….Factors affecting financial decisions are −
- Cost.
- Risk.
- Flotation cost.
- Cash flow position of the business.
- Control considerations.
- State of capital markets.
What are the three areas of financial management?
Finance consists of three interrelated areas: (1) money and credit markets, which deals with the securities markets and financial institutions; (2) investments, which focuses on the decisions made by both individuals and institutional investors; and (3) financial management, which involves decisions made within the …
What are the 5 stages of consumer buying decision process?
The 5 stages which a consumer often goes through when they are considering a purchase: problem or need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.
What are the five stages of buying decision process?
5 Stages of the Consumer Buying Decision Process
- Need Recognition. The buying decision process begins when a consumer realizes they have a need.
- Information Search.
- Option Evaluation.
- Purchase Decision.
- Post-Purchase Evaluation.