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FINANCIAL MANAGEMENT | DECISIONS OF FINANCIAL MANAGER |SCOPE OF FINANCIAL MANAGEMENT|VHSE MANAGEMENT
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This video explains the major decisions taken by a financial manager, that is the scope of financial management
the important decisions taken by a financial manager are
INVESTMENT DECISION
FINANCE DECISION
DIVIDEND DECISION
1. Investment decision - this decision relate to the secretion of assets in which funds will be invested by a firm. it may be short term investment decision (decision on current assets) or long term investment decisions (decision on fixed assets). investment decision should be taken after considering cost, return and risk of each projects.
2. financing decision - it relate to the composition of various sources of finance. the different sources of funds are owned sources like equity share capital, preference share capital, retained earnings etc.. and the borrowed sources like debentures and loans from financial institutions.
3. Dividend decision - it is concerned with the disposal of profits. the business has to decide how much profit to distribute as dividend to shareholders and how much profit to retain for reinvestment in the business.
the important decisions taken by a financial manager are
INVESTMENT DECISION
FINANCE DECISION
DIVIDEND DECISION
1. Investment decision - this decision relate to the secretion of assets in which funds will be invested by a firm. it may be short term investment decision (decision on current assets) or long term investment decisions (decision on fixed assets). investment decision should be taken after considering cost, return and risk of each projects.
2. financing decision - it relate to the composition of various sources of finance. the different sources of funds are owned sources like equity share capital, preference share capital, retained earnings etc.. and the borrowed sources like debentures and loans from financial institutions.
3. Dividend decision - it is concerned with the disposal of profits. the business has to decide how much profit to distribute as dividend to shareholders and how much profit to retain for reinvestment in the business.
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