Name the financial decision which relates to disposal of profits.

Dividend decision

The correct answer is option 2- Dividend decision.

Dividend decision relates to disposal of profits.

The important 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.