The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called ____________.
A. working capital decision
B. an investment decision
C. a production decision
D. a sales decision
Answer: Option B
Solution(By Examveda Team)
The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called an investment decision. The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities.Join The Discussion
Comments ( 3 )
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
its investment decision because it is substantial sum which is usually irreversible in nature, in contrast to working capital decision which is short term in nature.
in investment decision ..person expecting to earn more return rather than minimum return
why it is investment decision