POINTS TO REMEMBER
  1. What are the major financial decisions taken by a finance manager?
    • Long-term investment decision
    • Working capital decision
    • Financing decision
    • Dividend decision
  2. Enumerate factors influencing a financial decision.
    • Micro-economic factors, such as nature and size of enterprise, level of risk, liquidity position, asset structure and ownership pattern, and attitude of management.
    • Macro-economic factors, such as state of the economy and the governmental policy.
  3. What are the objectives of financial decisions?
    • Profit maximisation
    • Maximisation of corporate wealth
  4. When is profit maximised? Is it a suitable objective of financial decisions?
    • Profit is the maximum at a point of output when revenue exceeds the cost by the widest ...

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