Financial Management Decision

The financial manager must be concerned with three basic types of questions.

Capital Budgeting decision: process of planning and managing a firm’s long-term investments.
Financial decision: ways which the firm obtains and manages the long-term financing it needs to support its long-term investments. Financial decision relates with capital structure ( or financial structure) which is the specific mixture of long-term debt and equity.
Working capital management: it relates with a firm’s short-term assets, such as inventory, and its short-term liabilities, such as money owed to suppliers. Managing working capital ensures sufficient resources to continue its operations and avoid costly interruptions, and this involves management of cash receipt and disbursement.