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Question

Short term investment decisions affect the___


A

Large amount of funds for future

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B

Long term profitability

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C

Purchase of fixed assets

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D

Day to Day working of business

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Solution

The correct option is D

Day to Day working of business


Short term investment decisions are also called working capital decisions. These are concerned with the decisions about the inventories, debtors, bills receivable and level of cash etc. It affects the day to day working of the business.


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