HOW COMPANIES MAKE FINANCIAL DECISIONS? Introduction Financial decision making forms an important part of the normal operatio

PART ONE: HOW COMPANIES MAKE FINANCIAL DECISIONS 

Introduction

Financial decision making forms an important part of the normal operations of a company. These financial decisions are facilitated by the management in consultation with the finance department. The financial team needs to understand that these decision are essential and thus the overall goal of maximizing the shareholder’s value is achieved (Suto et al. 2007P). Therefore, financial decisions should be appreciated as an important aspect in investment because they play a vital role in the overall operations and management of the company.