Finance - Is the process of creating and raising funds for the business. It is also represented as money management. , Financial Management - It is the function of an organization in which profitability is concerned. The practice of handling finances.  , Investment Decisions - Decisions that are related to how the firm/business' funds are invested. , Factors affecting investment:  - 1. Cash Flows 2. Rate of Return 3. Investment Criteria, Financing Decisions  - Decisions that are needed to be taken regarding on the portion of finance to be raised from various long term sources. , Factors affecting financing:  - 1. Cost 2. Risk 3. Floatation Cost 4. Cash Flow position of Business, Dividend Decisions - Decision made on how much of the profit is to be distributed to the shareholders and how much should be retained for investment requirements.  , Factors affecting dividend:  - 1. Earnings 2. Stability of Earnings 3. Stability of Dividend 4. Growth opportunities,

Business Finance

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