The paper describes three major types of financial decision making in an enterprise: (a) decision on investment areas, (b) decision on investment financing, (c) decision on profit distribution. All three types of decision are interlinked and must reflect the most important objectives of an...

This paper describes three main risk areas in using return on investment in financial decision making. The paper also shows how to analyze differences between planned and actual size of return on investment and preconditions for using return on investment in financial decision making.