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Give 3 broad types of decision that financial managment makes?

Financial management primarily involves three broad types of decisions: investment decisions, financing decisions, and dividend decisions. Investment decisions focus on how to allocate resources to profitable ventures or assets, ensuring the best returns. Financing decisions determine the optimal mix of debt and equity to fund operations and growth. Dividend decisions involve determining how much profit to distribute to shareholders versus reinvesting in the business for future expansion.


What are the role of Transaction Processing System on financial information system?

An information system that tracks financial events and summarizes financial information is said to be financial information system. Generally the term financial information system refers to use of information communication technology in financial operations to support management and budgeting decisions and preparation of financial reports and statements. A financial information systems stores, organizes and makes access to financial information easy. It not only stores all the financial information relating to current and past years' spending, but also stores the approved budgets for these years, details on inflows and outflows of funds, as well as completes inventories of financial assets (eg equipment, land and building) and liabilities (debt).


What is the impact of organizational culture in its corporate decision making?

The impact of organizational culture in its corporate decision making is from top to bottom. This means that top management of the company makes all decisions and these decisions are mandated to the next levels of the company.


How does using a separate payroll account provide for better financial management?

Using a separate payroll account helps with better financial management by keeping payroll funds separate from other business funds. This makes it easier to track payroll expenses, ensure accurate accounting, and maintain compliance with tax regulations.


What is the importance of learning financial management?

Financial Management ImportanceFinancial management importance can be explained as management of money matters. It deals with managing money in all areas of life. Financial management includes personal financial management and organizational financial management. Personal finance management will help you manage the finance of your home which includes budgeting, saving, investing, debt management and other aspects related to personal money where by an individual can achieve personal goals. Whereas organizational finance management means the management of finance of a business or organization in order to achieve financial objectives. In an organization the key objectives of financial management would be to create wealth for business, generate cash and gain maximum profits from the investments of the business considering the risks involved.Financial management is very important for both individuals and organizations because it deals with managing the funds. It guides a company and individual to make optimum use of money to achieve maximum returns. For an individual financial management will help to save more and thus invest more. Since in includes debt management, it will guide the individual to create a financial plan whereby all the debts are paid on time. It will help to spend less and earn more, this will lead to more savings and thus a secure future. Financial management will help in retirement and investment planning .Lack of financial management in business will lead to losses and closure of business. With the study of financial management we can protect the business from miss management of money. Without proper financial management debts will not be paid in time and may make the businessman insolvent. Financial management will study the balance sheet of the company and keeps a watch on all sensitive facts that can endanger business into loss. It teaches us that we should think about cost, risk and control in any business and borrowed money must be minimum. It also explains the importance of time, risk and returns on investment. The return on investment must always be more than the cost of capital, risk investment should be least. We should get our money within a short period of time, all these facts are important for success of any business.Financial management consists of several aspects of business where a finance manager makes decisions on the basis of the financial data with regards to allocating funds, financing business and to develop policies to achieve business goals. Different types of accounting tools are used to manage finance in any business. For example ratios are used to compare performance of the business periodically and also with other businesses. The profitability ratio measure the profit margin, return on assets and return on equity. The liquidity ratio measure the current ratio and quick ratio that provide information on the company's ability to pay off debts. This ratio analysis enables the organization to compare and measure its performance. Financial management evaluates the performance of the business and keeps a check on the profitability aspect of the business.The importance of financial management can be summarized as follows:It brings economic growth and development through investments , financing, dividend and risk management decision which help companies to undertake better projects.When there is good growth and development of the economy it will ultimately improve the standard of living of all people.Improved standard of living will lead to good health and financial stress will reduce considerably.It enables the individual to take better financial decision which will reduce poverty, reduce debts and increase savings and investments.Better financial ability will lead to profitability which will create new jobs and in turn lead to more development , expansion and will promote efficiency.In personal life, financial management helps us to create a comfortable life with an assurance of a secured future and freedom to spend money to make us happy. The importance of financial planning and management is reflected in all the areas of personal and business life , it must not be avoided. All individuals no matter what their financial capacity is, must learn and study financial management and adapt it to improve their life.

Related Questions

What does the chancellor of exchequer do?

Makes decisions on Britain's financial policies.


Operational management typically makes which type of decisions?

B


What is the department of the British government that makes financial decisions for the government?

The Treasury Department.


What is corporate strategy level?

Corporate level strategy is apprehensive with the strategic decisions a company makes that have an effect on the whole business. Financial performance, Mergers and Acquisitions, human resource management and the distribution of resources are well thought-out element of corporate level strategy.


Explain in what sense the top management makes the company decisions and in what sense it does not make the company decisions alone with suitable examples?

arfasasr


Who makes tactical decisions when there is no middle management?

It should be noted that in many "flatter" organizations, where the middle management level has been eliminated, both tactical and operational decisions are made by lower-level management and/or teams of employees.


How makes Suze Orman an expert on money management?

lifelong experience. her dedication to learning the aspects of financial matters and to keeping her constant contact with public and the issues presented to her by them always current and active.


Who makes tactical decisions in an organization?

Tactical decisions, which focus on more intermediate-term issues, are typically made by middle managers.


What are non-programming decisions?

Non-programmed decisions are used for new, unstructured and badly defined problems, which are non-recurring. These decisions require subjective judgement. The top-level of management makes these decisions.


1 Explain in what sense the top management makes the companys decisions and in what sense it does not make the companys strategic decisions alone Illustrate with suitable examples?

1. Explain in what sense the top management takes decisions for a company and in what sense it does not takes the strategic decisions for a company alone? Illustrate with suitable examples.


Do lumberjacks keep the forest in balance?

Not really. Lumberjacks just cut down trees. They don't really make management decisions. They just do what they are told. Someone else makes management decisions that determine the fate of the forest.


Who makes the financial recommendation to the component acquisition executive for each milestone for acat ii programs?

Service or Component Assistant Secretary for Financial Management.