What are the 3 main decisions in finance?

Asked by: Prof. Raul Dickens  |  Last update: October 8, 2025
Score: 4.3/5 (17 votes)

When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.

What are the three financial decisions?

There are three types of financial decisions- investment, financing, and dividend. Managers take investment decisions regarding various securities, instruments, and assets. They take financing decisions to ensure regular and continuous financing of the organisations.

What are the 3 key decision areas for a finance manager?

The methods of accumulating funds, investing them in shares, and then returning the dividends collected on those investments to shareholders are referred to as financing, expenditure, and dividend decisions.

What are the three major decisions?

There are three major types of financial decisions – investment decisions, financing decisions, and dividend decisions.

What are 3 fundamental decisions that are of concern the finance team?

Three fundamental decisions financial management is concerned with are Capital budgeting decision, Working capital management, Financing decision.

Three Financial Decisions for Managers

43 related questions found

What are the three types of decision making in finance?

When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.

What are the three 3 things that financial managers need to plan?

The financial manager's responsibilities include financial planning, investing (spending money), and financing (raising money). Maximizing the value of the firm is the main goal of the financial manager, whose decisions often have long-term effects.

What are the 3 C's of decision-making?

Clarify= Clearly identify the decision to be made or the problem to be solved. Consider=Think about the possible choices and what would happen for each choice. Think about the positive and negative consequences for each choice. Choose=Choose the best choice!

What are the three major types of financial management decisions?

There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions.

What are the 3 levels of decisions?

Decision making are usually made at three levels in an organization ie strategic, tactical and operational levels.

What are the key decision areas in finance?

There are three decisions that financial managers have to take:
  • Investment Decision.
  • Financing Decision and.
  • Dividend Decision.

What are the three 3 types of decisions that managers make?

Decisions are part of the manager's remit. The three main types of decisions are - strategic, tactical and operational.

What are the three steps in financial decision-making?

3 Steps to build a financial plan
  • Set goals and gather data.
  • Tackle your immediate needs.
  • Plan for the future.

What are the three major decisions a finance manager is responsible for?

Answer and Explanation: The three functions are Investment, Financing, and Dividend distribution.

What are the 3 major types of financial?

The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.

What are the three key economic decisions 4?

The three basic decisions made by all economies are what to produce, how it is produced, and who consumes it.

What is the three main categories of financial management?

What Are the Three Types of Financial Management?
  • Capital budgeting. Relates to identifying what needs to happen financially for the company to achieve its short- and long-term goals. ...
  • Capital structure. Determine how to pay for operations and/or growth. ...
  • Working capital management.

What are financing decisions?

Financing decision is concerned with raising funds from which long-term sources, i.e., through shareholders funds or borrowed funds.

What are the three broad decisions financial management is based on?

Three major decisions are: i Investment Decision: It relates to how the firms funds are invested in different assets in the long-term and the short-term. ii Financing Decision: It relates to the quantum of finance to be raised from various long-term sources.

What are the 3 P's of decision-making?

Policy. Practice. Precedence. No matter how large the decision or how small the conversation, Board members should be methodical and intentional throughout their discourse.

What are the three pillars of decision-making?

Both scenarios illustrate the Three Pillars that provide the foundation for decisions in business, leadership, and everyday life: strategy, law, and ethics. This book focuses on the Three Pillars as they relate to business decisions.

What are the three 3 main characteristics of strategic decisions?

The characteristics of strategic decisions are- 1. Long-term direction 2. Entire scope of organization activities 3. Seek to achieve advantage over competitors 4.

What are the 3 S's for financial planning?

At Riverbend Wealth Management, we believe the 3 S's for financial planning are: Savings, Security, and Strategy. Savings involves building a financial cushion to cover emergencies and future goals. Security focuses on protecting your financial well-being against unforeseen risks through insurance and risk management.

What are the three key financial decision-making areas?

It deals in three main dimensions of financial decisions namely, Investment decisions, Financial decisions and Dividend decisions.
  • Investment Decisions. Investment decisions refer to the decisions regarding where to invest so as to earn the highest possible returns on investment. ...
  • Financial Decisions. ...
  • Dividend Decisions.

What are the 3 basic functions of a finance manager?

The three basic functions of a finance manager are as follows:
  • Investment decisions.
  • Financial decisions.
  • Dividend decisions.