Practicing Success
Capital Budgeting Decisions are related with: |
Long term investment Short term investment Preparing budget of Capital Working Capital |
Long term investment |
The correct answer is option 1- Long term investment. Capital budgeting decisions- Fixed capital refers to investment in long-term assets. Management of fixed capital involves the allocation of a firm’s capital to different projects or assets with long-term implications for the business. These decisions are called investment decisions or capital budgeting decisions and affect the growth, profitability, and risk of the business in the long run. These long-term assets last for more than one year. |