answersLogoWhite

0


Best Answer

The three main decision areas in Business Finance are:Investment decision,Financing decision and Dividend decision

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the three main decision areas in business finance?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What are the three functions of business finance?

Production Marketing Accounting


What are the three main areas of finance?

There are three major areas of finance:Corporate or Business FinanceCorporate or business finance is the area of finance that incorporates the actions of the company when it makes decisions about the financing decisions of the firm and the investing decisions of the firm. When a business firm invests in a project, such as buying inventory, that firm has to figure out a way to pay for that inventory. Paying for the inventory, in terms of finance, is making a financing decision for the firm. For each investment decision by a business firm, there has to be a financing decision. In other words, every time a business owner buys something, they have to figure out how to pay for it.Other areas of corporate finance within a business firm are budgeting, managing working capital, financial analysis, financial statement development, and more.Many students who study finance in college study corporate finance with the job goal of working in a major corporation when they graduate. In order to get a leg up on the competition, some students are interested in landing an internship in a major company in which they are interested.Another area of finance is investments . Within a business, particularly a large business, the firm invests in assets ranging from short-term securities that are marketable securities to long-term securities like stocks and bonds. The business invests for the same reason individuals invest - to earn a return.Business firms invest in both financial assets such as stocks of other firms and in physical assets such as buying a new building or new equipment.InvestmentsFinancial Markets and InstitutionsFinancial markets and financial institutions are the third area of finance. Financial markets are the stock and bond markets, the primary and second markets, and the money and capital markets, to only name a few ways that financial markets are classified.Financial markets, such as the stock market, help facilitate the transfer of funds between savers of funds and users of funds. Savers are usually households and users are generally businesses and the government. In the case of the stock market, that particular financial market provides a seamless exchange of ownership of a company between one person or business and another.The financial institutions work hand in hand with the financial markets regarding financial transactions. Financial institutions are actually financial intermediaries that help make transfers of funds between businesses and savers. For example, an individual might deposit money into a savings account. Then, the financial institution would take that money and loan it out to a business.These three areas of finance are taught in colleges and universities and are typically the areas in which finance graduates find jobs. As for businesses, business professionals work in each of these areas for the good of the business firm. The larger the business, the more activity there will be in the investments and financial markets areas,yunushossainbd@gmail.comhoodr17@yahoo.com


What are the main types of business lines?

The three main types of business lines or activities are operations, marketing, and finance. As a company grows other types of business functions become important as well. The three main types of of business organizations are sole proprietor, Partnership, and corporation or company.


What are three challenges when setting up a business?

Three challenges according to me: (1) Clear Vision (2) Finance (3) Proper Team to make your vision clear


What is business finance?

Finance is the science of funds management, or the allocation of assets and liabilities over time under conditions of certainty and uncertainty. A key point in finance is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. Finance can be broken into three different sub categories: Public finance, corporate finance and personal finance.

Related questions

What are the three functions of business finance?

Production Marketing Accounting


What are the three main areas of finance?

There are three major areas of finance:Corporate or Business FinanceCorporate or business finance is the area of finance that incorporates the actions of the company when it makes decisions about the financing decisions of the firm and the investing decisions of the firm. When a business firm invests in a project, such as buying inventory, that firm has to figure out a way to pay for that inventory. Paying for the inventory, in terms of finance, is making a financing decision for the firm. For each investment decision by a business firm, there has to be a financing decision. In other words, every time a business owner buys something, they have to figure out how to pay for it.Other areas of corporate finance within a business firm are budgeting, managing working capital, financial analysis, financial statement development, and more.Many students who study finance in college study corporate finance with the job goal of working in a major corporation when they graduate. In order to get a leg up on the competition, some students are interested in landing an internship in a major company in which they are interested.Another area of finance is investments . Within a business, particularly a large business, the firm invests in assets ranging from short-term securities that are marketable securities to long-term securities like stocks and bonds. The business invests for the same reason individuals invest - to earn a return.Business firms invest in both financial assets such as stocks of other firms and in physical assets such as buying a new building or new equipment.InvestmentsFinancial Markets and InstitutionsFinancial markets and financial institutions are the third area of finance. Financial markets are the stock and bond markets, the primary and second markets, and the money and capital markets, to only name a few ways that financial markets are classified.Financial markets, such as the stock market, help facilitate the transfer of funds between savers of funds and users of funds. Savers are usually households and users are generally businesses and the government. In the case of the stock market, that particular financial market provides a seamless exchange of ownership of a company between one person or business and another.The financial institutions work hand in hand with the financial markets regarding financial transactions. Financial institutions are actually financial intermediaries that help make transfers of funds between businesses and savers. For example, an individual might deposit money into a savings account. Then, the financial institution would take that money and loan it out to a business.These three areas of finance are taught in colleges and universities and are typically the areas in which finance graduates find jobs. As for businesses, business professionals work in each of these areas for the good of the business firm. The larger the business, the more activity there will be in the investments and financial markets areas,yunushossainbd@gmail.comhoodr17@yahoo.com


What are the three primary functions that exist in most business organizations?

Operations, Marketing and finance


What are three obstacles that hinders entrepreneur?

no business skills, lacking finance, no demand for the service/product


What three major functions of business organization can you enumerate and explain briefly?

finance, operation,marketing


What are the 3 critical areas of treasury risk management and their applications?

The three critical areas of treasury risk management are: Corporate finance Equity management Global dealing


What is cameralism?

Cameralism refers to an ancient German science of administration. It was composed of three areas: public finance, Oeconomie and Polizei.


What are the three main decision-making types discussed in the article?

1. Investment Decision;the identification of various investment opportunity.project are selected after a critical evaluation of the viability of those project. 2. Financing decision;the financial manager are expected to identify various sources of finance and determine which source is best for the project. 3. Dividend policy decision;this is a decision to know how profit after tax is to be distributed to shareholders in such a way that the business of the organization is not interrupted and shareholders of course would not have single reason to regret their investment.


What are the main types of business lines?

The three main types of business lines or activities are operations, marketing, and finance. As a company grows other types of business functions become important as well. The three main types of of business organizations are sole proprietor, Partnership, and corporation or company.


What are three challenges when setting up a business?

Three challenges according to me: (1) Clear Vision (2) Finance (3) Proper Team to make your vision clear


Defination of Bachelor of Commerce {BCom}?

B.Com, or Bachelor of Commerce, is a three-year undergraduate degree program in commerce and related subjects. It is designed to provide students with knowledge and skills in the areas of business, finance, accounting, economics, and management. The program is designed to help students develop the necessary skills for a successful career in the business world.


Defination of Bachelor of Commerce {Bcom}?

BCom, or Bachelor of Commerce, is a three-year undergraduate degree program in commerce and related subjects. It is designed to provide students with knowledge and skills in the areas of business, finance, accounting, economics, and management. The program is designed to help students develop the necessary skills for a successful career in the business world.