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1. Long term implication
2. Involves large amount of funds.
3. Irreversible.
4. Most difficult to make.
5. Funds requirement.
6. Financing.
Wiki User
∙ 11y ago
The nature of long-term financial decisions is strategic and forward-looking. These decisions involve evaluating investment options, evaluating financing options, and making decisions that aim to maximize shareholder value and achieve long-term financial goals. Long-term financial decisions are typically based on thorough analysis of market conditions, business performance, and future projections.
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What are the differences between strategic and operational decisions?
Strategic decisions affect long term goals whilst operational decisions are for short term and day to day efficiency
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.
Are provisions long term liabilities or short term?
Statement of Financial Position constitutes both "Long Term Provisions" as well as "current provisions" depending upon their nature and upon the fact that whether they fulfill the criteria for long or current provisions. This fact is evidenced by the sample statement of financial position as provided in IAS1 of IFRS where the long term liabilities constitute an item "provisions" and under the head of short term-liabilities there exists an item named "current provision".
What is the most important financial metric to review to determine long-term financial viability?
Solvency ratios are the most important financial metric systems used to determine long term viability. These ratios analyze how long it will take to pay off obligations that are long term.
What makes the strategic decision different from other decisions?
It is an educated and long term decision. where other decisions may be impulsive or short term
What is the similarity and difference between the cash budget and long term financial planning?
what is the difference and similarity between cash budget and long term financial planning
Long Term Financial Planning?
form_title=Long Term Financial Planning form_header=Make a plan for long term financial success with the help of a professional financial advisor. Have you ever consulted a financial advisor?*= () Yes () No Where is your money currently invested?*= _Please Explain[50] How much do you currently have saved?*= _Enter Amount[50] Are you currently in debt?*= () Yes () No
What are financial services?
These are the main financial services:Providing Long, Medium and short term loansProviding financial information of the particular field
Why do serious, life-changing decisions require the use of critical thinking skills?
Serious, life-changing decisions require critical thinking skills because they involve weighing various options, considering potential consequences, and making informed choices based on careful analysis. Critical thinking allows individuals to evaluate information objectively, identify biases or assumptions, and make decisions that are logical and well-reasoned. This is important when the outcome of the decision can have a significant impact on one's life or others.
Do those wishing to assume low risk tend to invest in a long term or short term investment?
That depends on the financial tools you use, take shares for an example, they seem to be very risky in the short term, in the long term, however, they almost always give you a reasonable yield. On the other hand, financial tools such as options and futures are used by even highly risk-averse investors in order to hedge the risks, and such investments are usually short-term in nature.
What kind of support a enterpreneur can have from financial institution?
In short and simple term, long term funds.
What is the importance of making short term and long term financial decisions?
When making financial decisions it is important to look at your time horizon. Certain investments may be great in the long term but bad for a short term investment. An example of this might be a very volatile investment that has large fluctuations in value. While over the long term this may be a good investment.....short term it may not. If you need funds to pay for a new house or your children's education and the investment has dropped dramatically in value at the time you need the funds this would be a bad situation to be in. It is always good to have enough liquidity to cover any need for funds on a short tem basis while maintaing other investments that you plan to hold over a longer time period.
