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The scope of Finance
In modern business society the scope of finance function is not so narrow. The scope of finance function is not confined simply to the raising of funds for the business.
If we confine the scope of finance function to the process of raising funds, it cannot and does not provide answers to many problems which arise after the funds are collected like the following should a business commit capital funds for a particular purpose.
Various decision regarding (i) acquisition of assets (ii) specific forms of assets where money is to be invested and (iii) the composition of its liabilities are covered under the scope of finance function these three question cover almost all finance functions of a firm and affect the three major decisions
(a) investment decision (b) financing decision and (c) dividend decision.