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Question
A decision to acquire a new and modern plant to upgrade an old one is a/an ________________.
A decision to acquire a new and modern plant to upgrade an old one is a/an ________________.
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Solution
The correct option is C Investment Decision
Investment decision is associated with determining where, when, and how much capital needs to be spend, also about the requirement of debt to fund, in the pursuit of making a profit.A decision to acquire a new and modern plant to upgrade an old one is an investment decision for the reason that new machinery brings in improvements in production thereby increasing efficiency. It helps in generating increased revenue for the business.
Investment decision is associated with determining where, when, and how much capital needs to be spend, also about the requirement of debt to fund, in the pursuit of making a profit.
A decision to acquire a new and modern plant to upgrade an old one is an investment decision for the reason that new machinery brings in improvements in production thereby increasing efficiency. It helps in generating increased revenue for the business.
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