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What do you think is the most important type of financial decision?


Type # 1. Investment Decision relates to the determination of total amount of assets to be held in the firm, the composition of these assets and the business risk complexions of the firm as perceived by its investors. It is the most important financial decision.

What are financial decisions?

  • Part 1. Making Financial Decisions What kinds of decisions are we talking about? The field of finance is often divided into two parts: Corporate(or Managerial) Financewhich deals with financial decisions made by managers of a company, and Investments, which focuses on how individuals or professional investment companies decide how to invest.

What is economic decision making in economics?

  • Economic decision making,in this book, refers to the process of making business deci- sions involving money. All economic decisions of any consequence require the use of some sort of accounting information, often in the form of financial reports.

What are the two parts of Finance?

  • The field of finance is often divided into two parts: Corporate(or Managerial) Financewhich deals with financial decisions made by managers of a company, and Investments, which focuses on how individuals or professional investment companies decide how to invest. This class will look at both parts of finance.

How do values guide the development of financial goals?

  • Values are a key factor in the creation of financial goals. (TRUE: Values guide the development of financial goals. For example, if someone values education, they will set goals to improve their human capital by taking college courses and obtaining degrees, credentials, and certifications)
Investment Decisions: Investment Decision relates to the determination of total amount of assets to be held in the firm, the composition of these assets and the business risk complexions of the firm as perceived by its investors. It is the most important financial decision.