Coming up with a production plan that maximizes the utilization of the company's production facilities
Identifying raw material suppliers
Identifying adequate and cheap raw material suppliers
Suppliers of Funds
Individuals/Households
Organizations (profit and non-profit)
Government
Demand of Funds
Individuals/Households
Organizations (profit and non-profit)
Government
Financial Institutions
Commercial Banks
Savings Banks
Investment Banks
Insurance Companies
Financing decisions
To determine the appropriate capital structure of the company and to raise funds from debt and equity
Investing decisions
Short-term investment decisions are needed when the company is in an excess cash position. Long-term investments should be supported by a capital budgeting analysis
Operating decisions
To determine how to finance working capital accounts such as accounts receivable and inventories
Dividends Policies
Cash dividends are paid by corporations to existing shareholders based on their shareholdings in the company as a return on their investment
Before a company may declare cash dividends, two conditions must exist: 1. The company must have enough retained earnings to support cash dividend declaration. 2. The company must have cash
