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Question

The firm invests its funds in acquiring fixed assets as well as current assets. When decisions regarding fixed assets are taken, it is also called ___


  1. Capital budgeting decision

  2. Investment decision 

  3. Financial decision 

  4. All of the above


Solution

The correct option is A

Capital budgeting decision


The firm invests its funds in acquiring fixed assets as well as current assets. When decisions regarding fixed assets are taken it is also called capital budgeting decision.

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