Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

A long term investment decision is called _____________

Options:

Capital structure

Financial Planning

Capital Budgeting

Working Capital decision

Correct Answer:

Capital Budgeting

Explanation:

The correct answer is option (3) : Capital Budgeting

Fixed capital refers to investment in long-term assets. Management of fixed capital involves allocation of 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