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The three types of financial management decisions are capital budgeting, capital structure, and working capital.In Some case Dividend decision is also part of financial management part although dividend decision comes under capital structure

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Q: 3 types of financing decisions under financial management?
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Financial Analysis: Assessing Business Health and Longevity?

Businesses need guidance and measuring devices in order to make accurate decisions about continuing or discontinuing certain operations; investing or borrowing money; acquiring property and machinery, and hiring personnel. Financial analysis explains the profitably, stability, and viability of a business or a company project.Financial analysis is usually done using ratios taken from company information like financial statements and other business tracking tools. Past performance is divided into time periods and is compared to present performance. Future probabilities are then projected from that information. Comparative performance is also measured using percentages so firms can see how they are trending within a certain market or with how their products stack-up against the competition.Company solvency and company liquidity are also measured using information from balance sheets which indicated the financial situation of the company at a given point in time. Income statements and balance sheets are used to identify the company's stability. Those statements plus other financial indicators are studied to assess the firm's ability to stay in business if a sudden market downturn occurs that results in significant losses.Financial Ratios Offer Businesses Several Financial Analysis ChallengesSeasonal factors can distort financial ratios and so can investor behavior that is not based on the general economy or economic fundamentals so many financial analysts use percentage analysis and comparative analysis in order to get a more accurate picture of a company's performance for specific time periods.Percentage analysis involves quantifying an item or groups of items as a percentage of another item. Cost items are expressed as a percentage of gross sales and net income is expressed as a percentage of total sales less total expenses. Comparative analysis lists sales and cost figures side-by-side for two or more periods for easy analysis.Some businesses use all three types of financial analysis to study growth, company solvency, and future potential. When financial analysts have the correct figures the health and life of any company is always in the hands of top management. The health of a company can change drastically in just one period, but if a financial analysis is done on a regular basis the business should be prepared for the change.


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The basic financial decisions include long term investment decisions, financing decisions and dividend decisions. Investment Decision relates to the selection of assets in which funds will be invested by a firm. These decisions are of two types Capital Budgeting Decisions and Working Capital Decisions. Financing Decision is broadly concerned with the asset-mix or the composition of the assets of a firm. The concern of the financing decision is with the financing-mix or capital structure or leverage. Dividend Policy Decision isrelated to the dividend policy.


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