Examveda
Examveda

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.

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Comments ( 3 )

  1. Rajat Saini
    Rajat Saini :
    2 years ago

    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.

  2. Shilpa Batra
    Shilpa Batra :
    3 years ago

    in investment decision ..person expecting to earn more return rather than minimum return

  3. Shilpa Batra
    Shilpa Batra :
    3 years ago

    why it is investment decision

Related Questions on Financial Management

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