Business size and growth potential Whether the assets are short-term or long-term before spending on them
Mode of fund raising
Profit Planning – Unless it is a social organization, earning more profits would be among any business’s primary goals. The profits a company makes, determines its financial health and future growth. Therefore, adequate usage of the money generated as profit is needed. Whether they have to be ploughed back to acquire assets and expand coverage, or to be spent on marketing, acquiring other businesses or invested to act as a buffer resource, all these considerations are made by financial leaders.
Understanding Capital Markets – A company’s shares are publicly traded on stock exchanges, and the transactions as well as the change in a listed company’s market capital is a constant phenomenon. Good financial managers have to be well-versed with the capital market dynamics, and the risks associated. Whether dividends are to be given to the shareholders when business generates profits or reinvested into the business, is one of the crucial decisions that can impact shareholders’ sentiments and company’s goodwill.
