Discussion The Financial Decision - 275 Words

Discussion: The Financial Decision (Other (Not Listed) Sample) Content: Discussion: The Financial DecisionName:Institution:Date:Discussion: The Financial DecisionFinancial decisions form an important part of effective organizational management. All organizations ought to have a comprehensive financial system, which should be characterized by accuracy and transparency. The process of decision-making on financial matters of an organization is crucial. It is through financial decisions that organizations are able to acquire resources, and manage them appropriately in order to effectively, run their operations while simultaneously making profits (West, Dellana Qian, 2005).However, the process of making effective financial decisions faces a number of challenges. Among the main difficulties faced when making financial decisions are balancing between the income and expenditure of an organization to attain its long-term financial objectives. Another challenge of making financial decisions is identifying an appropriate line of investment in which to put organizationà ¢Ã¢â€š ¬s resources, which guarantees significant returns (Zopounidis Doumpos, 2002).Organizations or companies have different financial packages with which it obtains resources. Among the main sources of finances for organizations are short-term and long-term loans, foreign currency loans, shareholderà ¢Ã¢â€š ¬s money, and values of the companyà ¢Ã¢â€š ¬s shares. It is recommendable that companies use stakeholderà ¢Ã¢â€š ¬s money and resources obtained from the sale of its shares to fund its operations rather than loans. The use of loans to fund organizations subjects them to debts, which they often pay with high interests. However, the use of resources from share sales and stakeholderà ¢Ã¢â€š ¬s money...