Whenever you are running a business or any organisation the most important thing is finance. it requires a lot of concentration to manage and deal with financial issues so there are some decisions concluded by them we can easily know about what and how to manage fiancee at a working place as well as non working area:

• The Financial Management studies empowers the managers to deal with three types of decisions

1.Investment Decisions

• The firm needs various types of assets for the smooth business operations.
• These assets are divided into two categories

Fixed Assets  & Current Assets

• Financial management studies differentiate between the capital budgeting and working capital decisions because
•  The investment in fixed assets are very high as compared to the working capital, and
• The investment in fixed assets effects the long term profitability of the business.

2.Financing Decisions

• It deals with the financial pattern of the firm, which decides the sources and amount of funds, a firm is willing to raise.
• There are two major sources of raising funds i.e., shareholders funds and borrowed funds.
• Shareholders funds parts the ownership while borrowed funds has fixed interest commitment.

3.Dividend Decisions

• As a firm operates, it earns profits at the end of financial year.
• The shareholders expects a good return in the form of dividend.
• The management, at the same time, wants the profits to retained in the business for future projects.
• How much of the profits to be retained and how much to be distributed as dividend is known as dividend decision, which form a part of FM study.

Need any help?

If you require any kind of guidance from our side you can check our article blog on www.cutevamp.com

Or contact us on: +919587406557 (India)

Email: Cutevamp911@gmail.com