INVESTMENT DECISIONS IN A FIRM AS THE PART OF BUSINESS
              FINANCIAL DECISION SYSTEM

                       Melles Hagos Tewolde, Associate Proffessor PhD
             Institute of Economics, Illyés Gyula College of the University of Pécs
                                    mhtewoldel@igyfk.pte.hu

ABSTRACT: While the tools and techniques covered in this paper are discussed and
demonstrated in details, the user must not be tempted to view them as the ends in themselves.
It’s simply not enough to master the techniques alone! Financial and economic analysis is
both an analytical and judgment process which helps answering questions that have been
carefully posed in management context. The process is at its best when the analyst’s efforts
are focused primarily on the structuring the issue and its context, and only secondary on the
data manipulation.
Selecting the appropriate tools from the financial decisions is clearly an important part of the
analytical task. Yet, experience has shown again and again that developing a proper
perspective for the problem or issue is just as important as the choice of the tools themselves.
Apart from the providing specific numerical answers the “solutions” to financial problems
and issue depends significantly on the points of view of the parties involved on the relative
importance of the issue, and the nature and reliability of the information available.

Key words: strategic perspective, decisional framework, components of analysis, economic analysis
methods.

JEL Codes:G10