Short term investment decisions are also called as __________ decisions.

capital budgeting

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wealth maximization

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working capital

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both a and b

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Solution

The correct option is D working capital
Working capital is the amount of liquid assets which an organization has at its disposal. Working capital investments are required to pay for unexpected and unplanned expenses to build a business and meet the business’s short-term duties and obligations.

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Similar questions

A decision to acquire a new and modern plant to upgrade an old one is a

(a) financing decision

(b) working capital decision

(d) None of the above

Discuss in brief the concept of investment decision and why capital budgeting decisions are crucial in nature.

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