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Question

Which of the following is not concerned with long-term investment decision?


A

Advertisement campaign

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B

Day to day working

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C

Purchase of fixed asset

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D

Launching a new product line

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Solution

The correct option is B

Day to day working


Investment decision relates to how the firm's funds are invested in different assets. The firm invests its funds in acquiring fixed assets as well as current assets. When decisions are taken regarding fixed assets then it is called capital budgeting decisions.


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