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Q: What are the basic financing decisions?
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What are the basic financial decision in an organization?

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.


What are the two basic types of financing used by a corporation?

They are equity financing and debt financing.


What are the basic financial decisions?

basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.


What are the typical examples of financing decisions regarding the wrong source of finance to the wrong business expense?

Typical examples of financing decisions regarding the wrong source of finance to the wrong business expense include spending money meant for education programs on road infrastructure.


What is the difference between capital budgeting decisions and capital structure decisions?

Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.

Related questions

What are the basic financial decision in an organization?

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.


What are the two basic types of financing used by a corporation?

They are equity financing and debt financing.


Financing decisions primarily deal with?

how to obtain funds to acquire resources


What are the basic financial decisions?

basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.


How financing investment and dividend decisions of a company can help to attain wealth maximization?

Yes


The basic resource from which plans are developed and decisions are made is called?

Information is the basic resource from which decisions are made.


What are the typical examples of financing decisions regarding the wrong source of finance to the wrong business expense?

Typical examples of financing decisions regarding the wrong source of finance to the wrong business expense include spending money meant for education programs on road infrastructure.


What decisions about production must be made to allocate resources effectively?

Information is the basic resource from which decisions are made.


What Type of House Financing Should You Choose?

Financing a home is a big step that comes with big decisions. One of the first decisions you will have to make is what type of house financing you want. In other words, which loan will you choose? The most popular type of loan in a fixed rate loan. With this type of loan your interest rate stays the same for the entire time you have the loan. This is good because you can anticipate how much your payments will be, as they should remain relatively stable. If a fixed rate doesn't sound right for you, there are other types of home financing you can explore.


Three basic activities common to all manufacturing operations are?

Three basic activities common to all manufacturing operations are financing, producing, and selling.


Who has resposibility for financing public education?

The financing of public education is done by the public at large. The basic idea behind an educated society is that the more educated individuals are, the better society does as a whole.


How is accounting data used to make business decisions?

utilize accounting data as .... basis for making business decisions ... Accounting is used to help corporations make economically useful decisions. ... that support the business functions of accounting, financing, marketing . ... The two that we deal with decisions made regarding accounting practices and . ...