The correct answer is Option (3) → Capital Budgeting Decision
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Capital Budgeting Decisions relate to investment in long-term assets, such as purchasing new machinery, building a new plant, or replacing old equipment. These decisions involve a large outlay of funds and have implications for the company's profitability for many years.
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Working Capital Decisions relate to the management of short-term assets and liabilities (e.g., cash, inventory, accounts receivable, accounts payable).
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Financial Management is the overall discipline that includes capital budgeting, working capital, and financing decisions.
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Financial Planning is the process of estimating the capital required and determining its sources. It's a precursor to the decision, not the decision itself.
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