What type of decisions involve determining which projects to invest in, how to finance those investments, and whether to pay dividends?

The correct answer focuses on the fundamental aspects of financial management within a business. Capital Investment Decisions are critical as they involve evaluating and choosing where to allocate funds for long-term growth, whether that be through new projects, equipment, or other assets. This type of decision-making is pivotal because it affects the company's future performance and financial health.

In determining which projects to invest in, businesses assess the potential return on investment compared to the risks involved. Additionally, deciding how to finance these investments—whether through equity, debt, or internal cash flow—plays a significant role in shaping the company's financial strategy and overall stability. The decision about whether to pay dividends involves analyzing the profitability and cash flow of the business, as well as the necessity of reinvesting profits for future growth.

This context sets capital investment decisions apart from operational decisions, which typically concern day-to-day functions, or financial management decisions, which may encompass broader financial strategies. Lastly, strategic planning decisions generally deal with overall direction and goals of the organization rather than the specific financial investments being made.