Which of the following is NOT concerned with the Long term investment decision of a business?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Inventory management.
Inventory management is a part of short term working capital decision.
Inventory Management is concerned with the efficient management of stock and materials to ensure smooth operational processes. While important for day-to-day operations and working capital management, it is more focused on short-term operational efficiency rather than long-term investment. Therefore, inventory management is the option that is not concerned with long-term investment decisions.
OTHER OPTIONS
- Management of Fixed Capital: This involves decisions about acquiring and managing long-term assets, such as machinery, buildings, and equipment. This is a key aspect of long-term investment decisions as it relates to investing in assets that will be used for many years.
- Research and Development Programme: Investing in R&D is a long-term strategic decision aimed at developing new products or improving existing ones. This can impact the company’s future growth and innovation, making it a long-term investment decision.
- Opening a New Branch: This involves investing in new physical locations to expand the business, which is a long-term investment decision related to growth and expansion strategies.