Question

__________ means deciding the quantum of investment out of available finance on long term basis as well as on short-term basis.

• A. Investment decisions
• B. Financing decisions
• C. Dividend decisions
• D. All of above

Answer 1

Answer: (A)

Investment decisions

The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities.

Simply, selecting the type of assets in which the funds will be invested by the firm is termed as the investment decision. These assets fall into two categories:

• Long Term Assets
  
• Short-Term Assets