Question

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

• A. Investment decision
• B. Interest decision
• C. Financing decision
• D. Dividend decision

Hint:

Main financial decisions: \[ \mathrm{Investment,\ Financing,\ Dividend} \]

Answer 1

The Correct Option is B

Concept: The three major financial decisions taken by a finance manager are:
• Investment Decision
• Financing Decision
• Dividend Decision

Step 1: Analyze Investment Decision.
Investment decisions involve allocation of funds to long-term assets. \[ \Rightarrow \mathrm{Taken\ by\ Finance\ Manager} \]

Step 2: Analyze Financing Decision.
Financing decisions deal with sources of funds and capital structure. \[ \Rightarrow \mathrm{Taken\ by\ Finance\ Manager} \]

Step 3: Analyze Dividend Decision.
Dividend decisions involve distribution of profits among shareholders. \[ \Rightarrow \mathrm{Taken\ by\ Finance\ Manager} \]

Step 4: Analyze Interest Decision.
\[ \mathrm{Interest\ Decision} \] is not recognised as a standard financial management decision category. \[ \Rightarrow \mathrm{Incorrect\ Category} \]

Step 5: Identify the correct option.
Therefore, the decision not taken as a standard finance management decision is: \[ \boxed{\mathrm{Interest\ Decision}} \] Hence, the correct answer is: \[ \boxed{\mathrm{(B)}} \]