Explain, in brief, any three decisions involved in financial management.

Following are the main decisions which are involved in financial management:

(i) Investment Decision: It refers to the selection of assets in which funds will be invested by the business. In other words, these decisions are concerned with the effective utilisation of funds in one activity or other.

(ii) Financing Decision: It refers to the determination as to how the total funds required by the business will be obtained from various long-term sources.

(iii) Dividend Decision: It refers to the determination of how much part of the earning should be distributed among shareholders by the way of dividend and how much should be retained for meeting future needs as retained earning.