FUNCTIONS IN FINANCE

Question 1

aka capital budgeting; involves the allocation of resource including capital to projects, products or services, and assets. This is an efficient placement of capital to various means

Answer 1

Investment decision

Question 2

Examines and fins the best capital structure for the organization. It determines how the firm can raise capital such as selling of assets, issuing stock or obtaining a debt facility

Answer 2

Financing decision

Question 3

Concerns the right period of time frame by which the organization will issue a percentage of income to stockholders through dividends. It also determines the issuance of stocks and the earnings retained to the firm

Answer 3

Dividend decision