Tag: Introduction to financial management

Financial decisions are the choices that managers make to maximize the value of their firms.

They can be classified into three main categories: investment decisions, financing decisions and dividend decisions.

Financing decisions involve the critical task of determining how to source the necessary funds to support a company’s operations and future endeavors; investment decisions revolve around the allocation of available resources to different investment opportunities and projects, while dividend decisions are concerned with deciding how much profit will be distributed to the shareholders of a company.

Finance can be broadly defined as the discipline that deals with the management, creation, and study of money and other financial assets.

It is the field of study that deals with the management of money and investments. It is essentially the art and science of money management.

Finance studies money affairs, money matters and other things related to money.

It involves understanding how individuals, businesses, and public institutions raise, allocate, and use financial resources to achieve their financial goals.

Financial management deals with the maintenance and creation of economic value or wealth by focusing on decision-making with a mindset of creating more wealth.