Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Which of the following is an important factor to be considered in long-term investment decisions?

Options:

Control Consideration

Stability of Earnings

Contractual Constraints

Rate of Return

Correct Answer:

Rate of Return

Explanation:

The correct answer is Option (4) → Rate of Return

In long-term investment decisions (also called capital budgeting decisions), the most important factor is the rate of return expected from the investment. It helps determine whether the project will be profitable and financially viable over time.