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.
basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.
Exposure to the financial manager is significant as it provides insights into the organization's financial health and strategic direction. It allows stakeholders to understand financial decision-making processes, assess risks, and evaluate investment opportunities. Additionally, this interaction fosters transparency, enhances communication, and helps align financial goals with overall business objectives. Ultimately, it contributes to informed decision-making and promotes accountability within the organization.
financial functions of a business organization
In an organization, the finance department is primarily responsible for managing money. This includes roles such as the Chief Financial Officer (CFO), accountants, and financial analysts, who oversee budgeting, accounting, and financial reporting. They ensure that funds are allocated efficiently, expenses are tracked, and financial health is maintained. Additionally, management and department heads may also play a role in financial decision-making within their areas.
Organization structure draws and displays how organization operates and performs its functions through allocation of responsibilities for different functions and processes to different entities. It is the organization structure that defines the reporting and decision making hierarchy of an organization and how project management operates within it. An organization can be structured in many different ways and styles, depending on their types, objectives and functions. Organization structure can be functional style, divisional (multidivisional) style, project team style, or matrix style. A financial goal of any organization is profitability which means how much returns an organization gain on its investments.
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basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.
Importance of financial ratio analysis on investment decision making?
It assist the organisation to mak decision on their financial statement.
A creditor is generally considered an external user of financial information. They are not part of the organization but rely on financial statements to assess the creditworthiness and financial health of the business. Internal users, such as management and employees, use financial information for decision-making within the organization.
The deciding financial policy refers to the framework or set of principles that guide an organization's financial decision-making process. It typically includes guidelines on budgeting, investing, borrowing, and overall financial management to ensure the organization's financial stability and success. The policy is designed to align with the organization's goals and objectives while adhering to regulatory requirements and best practices in financial management.
Accural accounting provides a uniform method to measure an organization's financial performance.
The role of management levels in accounting is to get full information about the financial position in the organization to get the decision
Exposure to the financial manager is significant as it provides insights into the organization's financial health and strategic direction. It allows stakeholders to understand financial decision-making processes, assess risks, and evaluate investment opportunities. Additionally, this interaction fosters transparency, enhances communication, and helps align financial goals with overall business objectives. Ultimately, it contributes to informed decision-making and promotes accountability within the organization.
The basic thrust, or idea, of strategic decision making is choosing actions that will help an organization or group achieve its goals or continue to achieve them. It involves choosing these actions wisely and effectively carrying them out.
Financial Accounting is concerned with preparation of Financial Statements that would serve the interests of Investors, Banks, Creditors, and general public at large. The aim of Financial Accounting is to facilitate Financial Decision Making based on Accurately Gathered Significant financial Information pertaining to the Performance of the Organization and also giving information about the Current position of the Organization's Assets and Liabilities.
Cost implications refer to the financial impact of a decision or action. It involves assessing how the decision will affect expenses, revenue, or profitability of an organization. It is important to consider cost implications when making business decisions to ensure financial sustainability and efficiency.