Home › BBA Finance › Financial Management › Financial Management › A long-term investment decision, such as buying …
A long-term investment decision, such as buying a new machine, is called a:
AWorking capital decision
BFloatation cost decision
CCapital budgeting decision
DDividend payout decision
Answer & Solution
Correct answer: C. Capital budgeting decision
1. It commits finance for the long run.
2. That is a capital budgeting decision.
3. It is hard to reverse without a huge cost.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
Related questions
Excess cash invested in cash alternatives is said to create:Because payments for purchases are usually made on credit, cash outflows in a month often Assets that turn into cash within a year through normal operations are contrasted with capCash held by a business is needed above all to pay the bills and meet the:Credit taken from suppliers, recorded as accounts payable, is called:Better inventory management, better collections and longer supplier terms together will:Working capital needs that stay in place all year round are described as:Working capital needs that rise and fall with the season are described as: