Explain the key decisions falling within the scope of financial strategy.

The key decisions falling within the scope of financial strategy are as follows: a. Financing decisions: These decisions deal with the mode of financing or mix of equity capital and debt capital. b. Investment decisions: These decisions involve the profitable utilization of firm's funds especially in long-term projects (capital projects). Since the future benefits associated with such projects are not known with certainty, investment decisions necessarily involve risk. The projects are therefore evaluated in relation to their expected return and risk. c. Dividend decisions: These decisions determine the division of earnings between payments to shareholders and reinvestment in the company. d. Portfolio decisions: These decisions involve evaluation of investments based on their contribution to the aggregate performance of the entire corporation rather than on the isolated characteristics of the investments themselves.