Dear friend,

Investment Decisions are the decisions wherein the decisions are made to deploy / invest funds in asset / investment instrument with objective to earn either valuation increase of returns in form of %.

Financing Decisions, are the decisions wherein the decisions are made to acquire certain Inverstment / Equipment / or a property with the help of outside means of finance like loans, issue of shares, bonds, etc. Even capital issuance is called Financing Decisions.

Distribution Decision focus on establishing a system that, at its basic level, allows customers to gain access and purchase a marketer's product. However, marketers may find that getting to the point at which a customer can acquire a product is complicated, time consuming, and expensive. The bottom line is a marketer's distribution system must be both effective (i.e., delivers a good or service to the right place, in the right amount, in the right condition) and efficient (i.e., delivers at the right time and for the right cost). Yet, as we will see, achieving these goals takes considerable effort. These are the decisions involved is setting ups such networks for product distribution for customers.

The difference is that the Investment decision results in out-go of Cash, Financing decisions results into in-flow of Cash and Distributions decisions involves both but not direct as cash is used to set up distribution channels and networks.

I hope the above helps...

Regards,

Dear Friend,

The term "distribution system" can be used with both the references. One which you said, and ALSO the one which I referred to.

Coming to the connections with the three, the connection between investment and financing decisions are made keeping the overall money market / interest rate positions in view. Both of them are also taken keeping the existing cash position and keeping the opportunity cost of the available funds in view. It may be the case that even if the firm is able to acquire an asset, the availabillty of additional firms may be cheap and also the existing money may fetch direct and higher return. So the company may make an investment decisions.

The distribution decisions, is more of an individual decision in my opinion and not so directly related with the two. Only the distirbution decisions are made depending upon the funds available after making the investment and financing decisions. Or vice versa, i.e. distribution decisions are taken first and depending on that the investment and financing decisions are taken.

I hope the above helps...

Regards,