BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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financing decision
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working capital decision
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investment decision
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none of the above
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Detailed explanation-1: -A decision to acquire a new and modern plant to upgrade an old one is an investment decision for the reason that new machinery brings in improvements in production thereby increasing efficiency. It helps in generating increased revenue for the business.
Detailed explanation-2: -The correct option is B. Investment decision. The Investment decision refers to the decision of investing funds in different assets. It can be long term or short term. A Long term Investment decision is also called ‘Capital Budgeting Decision’ .
Detailed explanation-3: -Investment management refers to the handling of financial assets and other investments-not only buying and selling them. Management includes devising a short-or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well.