Examples

A simple example to explain financial decision could be:

A long term capital decision would be to buy machinery for production. This is important as it affects the long term earnings of the firm and a short term investment is related to levels of cash, inventories, etc. These decisions affect day to day working of the business.

A few outstanding examples of great financial planning and management from around the world are as follows:

1.  DP World Plan and Caisse de Depot et Placement du Québec (CDPQ) jointly invested $5 billion in three well-known UAE assets:
  • Jebel Ali Free Zone (JAFZ), the largest free zone in the world and located in the middle east.
  • Jebel Ali Port (JAP), which created a trade corridor between the east and the west.
  • National Industries Park (NIP), which dispersed its manufacturing and processing businesses over an area of 21 square kilometers.
A logistics chain made up of 8700 international enterprises and more than 3.5 billion consumers globally was made available to CDPQ as a result of the investment. These assets generated a total income of $1.9 billion in 2021.

2. Many people believed Mark Zuckerberg was making a mistake when Facebook made a record-breaking $1 billion offer to buy Instagram in 2012. However, acquiring Instagram proved to be one of the greatest tech purchases ever, ensuring Facebook's dominance in social media for years to come.

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