Financial Management - Finance – An Introduction
Factors Influencing Financial Decisions
Posted On :
There are innumerable factors that influence the financial decision. They are classified as external factors and internal factors.
Factors
Influencing Financial Decisions
There are innumerable factors that influence the financial decision. They are classified as external factors and internal factors.
1. Capital structure
2. Capital market and money market
3. State of economy
4. Requirements of investors
5. Government policy
6. Taxation policy
7. Financial institutions / banks lending policy
1.6 Nature of business
2. Age of the firm
3. Size of the business
4. Extent and trend of earnings
5. Liquidity position
6. Working capital requirements
7. Composition of assets
There are innumerable factors that influence the financial decision. They are classified as external factors and internal factors.
External factors
1. Capital structure
2. Capital market and money market
3. State of economy
4. Requirements of investors
5. Government policy
6. Taxation policy
7. Financial institutions / banks lending policy
Internal factors
1.6 Nature of business
2. Age of the firm
3. Size of the business
4. Extent and trend of earnings
5. Liquidity position
6. Working capital requirements
7. Composition of assets
8. Nature of risk and expected return
Tags : Financial Management - Finance – An Introduction
Last 30 days 757 views
