Option 1 -> Dividend decision relates to profit distribution to shareholders, not day-to-day operational expense management.
Option 2 -> Investment decision focuses on long-term capital allocation and asset acquisition, not managing daily operational expenses.
Option 3 -> Working Capital decision involves managing short-term assets and liabilities (cash, inventory, receivables, payables) essential for day-to-day operations.
Option 4 -> Solvency decision concerns long-term financial stability and meeting long-term obligations, not daily operational expenses.
Hence, Option 3: Working Capital decision -> When a firm struggles with day-to-day operational expenses, it indicates poor working capital management. Working capital decisions ensure adequate liquidity to meet short-term obligations, manage cash flows, and fund daily operations efficiently. Ignoring this leads to operational difficulties. -> correct