Pawan Kalyan

  Types of Financial Management Decisions Here are some of the additional types of financial management decisions which is also considered as important for an organization. Let us go further on it. Treasury and Capital Budget Management Capital budgeting is the planning procedure used to decide if a company’s fixed assets, for example, new plant, new machinery; new research projects are worth of allocating funds through the organization capitalization structure (equity, debt or profit earnings). Numerous formal strategies are utilized in capital budgeting. For example: Profitability index, Payback period, Net present value, Real options valuation,  accounting  rate of return, internal rate of return, Equivalent annual cost and more. These management teams are likewise accountable for raising funds and investing funds. In the event that an organization merge with another organization or expands, team will facilitate the financial needs for merger or expansion. Capital Structure Manageme

 Functions of Financial Management Financial management is essential for properly and efficiently managing financial resources. Financial management functions ensure that the appropriate amount of funds is available when needed for a business. These functions range from the acquisition of funds to their proper and effective utilisation. So, here are various functions of Financial Management: https://www.vedantu.com/commerce/functions-of-financial-management 1.Financing Decision: The amount of money to be raised from various long-term sources of funding, such as equity shares, preference shares, debentures, bank loans, etc., is the subject of this financial decision, referred to as a financing decision. In other words, it refers to the company's "capital structure." There are two ways from which finance can be sourced. Borrowed Fund: It includes Retained Earnings, Bonus, and Share Capital. Owner’s Fund: It includes Loans, Bonds, and Debentures.Investing Decision:  Click he