The size of assets, the profitability and competitiveness are all affected by which of the following?

Working capital decision Capital budgeting decision Financing decision Operating Decision

Capital budgeting decision

A long-term investment decision is also called a Capital Budgeting decision. It involves committing the finance on a long-term basis. For example, making investment in a new machine to replace an existing one or acquiring a new fixed asset or opening a new branch, etc. These decisions are very crucial for any business since they affect its earning capacity in the long run. The size of assets, profitability and competitiveness are all affected by capital budgeting decisions.