What about investment decision of financial management?
Investment decisions are the most important of a firm's three types of decisions.
It begins with the amount of assets a firm needs to be held by the firm. Try to picture the firm balance sheet in your mind for a moment. The financial management need to determine the dollars amount that is above the double line on the left hand side of the balance sheet- that is the size of the firm. Even when the number is known, the composition of the assets must still be decided. For example, how much of the firm's total assets must be devoted to cash or inventory. Also, the flip side of the firm's investment of disinvestment must not be ignored.
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