The financial part of a company is the measurable way of a firm’s competitive position and overall attractiveness to investors.   Formulating strategy’s depending on the organizations strengths or weaknesses is essential to be efficient.  In Finance/Accounting functions there are three decisions:

 

 

INVESTMENT DESITION

 

Decisions that a company makes regarding where it should allocating its resources, for example, products, projects, assets and divisions of an organization.

 

In our company the capital budgeting was of an amount of 10 million pesos, which was used to obtain assets and products in order to develop the bases of our hair saloon.

 

 

FINANCING DESITION

 

Determines the best capital structure for a firm and various methods by which the firm can raise capital

 

We are a small business so we need to raise capital to maintain an establish profitable enterprise, the methods that we are going to use to do this is to use our own capital, we are not going to obtain bank loans, and we will not look for other investors, we will maintain the utility and making a good margin of sales so we can increase the income.

 

 

DIVIDEND DESITION

 

Percentage of earnings paid to stockholders, the stability of these dividends over time and repurchase or issuance of stock.

 

Because we are a new and a small company, we the stockholders decide to reinvest the earnings so that our business can grow and survive in the market in a larger scale. We consider stockholders can start to get profits later in time when our costumer loyalty is established and we maintain our sales constant