Identify the type of Decision not taken by finance manager in a company.

Interest decision

The correct answer is option (2) : Interest decision

1. Investment decision - It relates to how the firm's funds are invested in different assets. Investment decision can be longterm or short-term. A long-term investment decision is also called a Capital Budgeting decision.

2. Interest Decision - It is not a widely used term and the financial manager doesn't work on it.

3. Financing Decision - This decision is about the quantum of finance to be raised from various long-term sources. Short-term sources are studied under the 'working capital management' It involves identification of various available sources. The main sources of funds for a firm are shareholders' funds and borrowed funds.

4. Dividend Decision - This is a decision that every financial manager has to take relates to the distribution of dividend. Dividend is that portion of profit which is distributed to shareholders. The decision involved here is how much of the profit earned by company (after paying tax) is to be distributed to the shareholders and how much of it should be retained in the business.