Question

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

• A. Research and Development Programme
• B. Opening a new branch
• C. Inventory management
• D. Management of fixed capital

Answer 1

The correct option is C

Inventory management

Long term investment decisions are also called capital budgeting decisions which include purchase of land and building, plant and machinery,change of technology, research and development and expenditure of advertising campaign etc. Inventory management comes under working capital management decisions.