The three elements of decision are; 1) Ability 2) Will 3) Knowledge
basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.
Integrate all three above to provide excellence in decision support
§ A company would have different people in decision making at different periods of time. Decision often require judgments and thus is important to note that the person related factors are important in decision making and the decision make differ as that person changes. § Again an individual does not take decisions alone. But often there is rumble in decisions, which could be between individual and group decision making. The decision taken by the group could be different from those that may be taken by the individual themselves. § The company would need to decide on what criteria it should make its decision. Thus it need a process of objective setting, which serve as benchmarks for evaluation of the efficiency and effectiveness of the decision making process. There are three major criteria in decision making- the concept of maximization, - the concept of satisfying, -the concept of instrumentalism. Based on the chosen concept, Strategic decisions will differ. § It is assumed that decision making is logical and thus there will be rationality in the decision making. In the context of Strategic decision making, it means that there would be a proper evaluation and then exercising a choice from among various alternative courses of action in such a way that it may lead to the achievement of the objectives in the best possible manner. § As the situations are complex, straightforward thinking may not be effective. Creativity in decision making may be needed, thus the decision must be original and different. But also based on situation and circumstances there could be variability in decision making.
The three main decision areas in business finance are:Investment decision,Financing decision and Dividend decision
The three decision-making methods differ in their approach and speed. Rational decision-making involves evaluating alternatives based on logic and rationality. Intuitive decision-making relies on gut feelings and past experiences. Behavioral decision-making considers cognitive biases and emotions in the decision-making process.
Identify the problem, identify any competing ethical positions or principles, and go over ethical guidelines.
The three elements of decision are; 1) Ability 2) Will 3) Knowledge
impulsive and rational
debtcreate a national bankraise money
basic financial decisions are three type: 1. Financial Decisions, 2.Investment Decisions, 3.Dividend Decision.
Income statement Trend analysis and Growth Rate Financial Rate
Integrate all three above to provide excellence in decision support
three dimensions of data
Create GuidelinesWrite the LettersErase the Guidelines
1. Risk 2. Capital 3. Resources
The three types of financial management decisions are capital budgeting, capital structure, and working capital.In Some case Dividend decision is also part of financial management part although dividend decision comes under capital structure