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A Framework For Financial Decision Making

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A framework for financial decision making : Like any other decision-making area, financial decisions involve choices between two or more possible courses of action.

Financial decision making has six steps:

  • Define objective(s).

  • Identify possible courses of action.

  •  Assemble data relevant to the decision.

  •  Assess the data and reach a decision.

  • Implement the decision.

  • Monitor the effects of the decision.

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