Question

A long-term investment decision is also called a Capital Budgeting decision.

• A. True
• B. False

Answer 1

The correct option is A True

A long term investment decision is also called a capital budgeting decision. It involves committing the finance on a long term basis, e.g. making investment in a new machine to replace an existing one or acquiring a new fixed assets or opening a new branch etc.

These decisions are very crucial for any business.