Start learning →

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: syllabus Business Studies Part II, Chapter 9, Financial Management._
Practise this question with Quill — AP Intermediate 2nd Year →

Keep practising Financial Management

Browse all Financial Management questions for AP Intermediate 2nd Year, or explore more Business Studies topics.

Start a Financial Management lesson →
Related questions
The three broad financial decisions are investment, financing and:The primary aim of financial management is to maximise:Financial management is concerned with the optimal procurement and:Money required for carrying out business activities is called:True or false: financial managementTap every financial decisionWhich source of finance must be serviced (paid) regardless of whether the firm earns a proWhich of the following is NOT one of the three broad finance-function decisions?