Practicing Success
Practicing Success
CUET Preparation Today
| Investment decision involves which of the following? |
investment in fixed assets. investment in current assets. investment in Government securities. investment in fixed and current assets. |
| investment in fixed and current assets. |
| Investment Decision: A firm’s resources are scarce in comparison to the uses to which they can be put. A firm, therefore, has to choose where to invest these resources, so that they are able to earn the highest possible return for their investors. The investment decision, therefore, relates to how the firm’s funds are invested in different assets. Investment decision can be long term or short-term. A long-term investment decision is also called a Capital Budgeting decision. Short-term investment decisions (also called working capital decisions) are concerned with the decisions about the levels of cash, inventory and receivables. |
