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प्रश्न
What is meant by ‘Investment Decision’?
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उत्तर
The process of deciding where to distribute capital in order to earn returns is referred to as an investment choice. Investment decisions in business might involve the purchase of new assets, the expansion of activities, or the purchase of securities such as stocks and bonds.
- Long-term investing decisions entail allocating cash over the course of several years or more. Long-term investment decisions can involve purchasing new equipment or machinery, increasing a company's physical base, or investing in research and development.
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Short-term investing decisions entail allocating funds for a period of time of one year or less. While short-term investment decisions typically include less capital and have less of an impact on a company's overall strategy, they still may have a significant impact on its liquidity and cash flow.
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संबंधित प्रश्न
The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name and state the decision.
“A capital budgeting decision is capable of changing the financial fortunes of a business.” Do you agree? Give reasons for your answer?
‘Zenith Mall’ is a famous shopping mall in Mumbai, owned by ‘Pinnacle Group'. It is very popular for its international and national brands of fashionable clothes, restaurants, cinema halls and food courts.
The management of Pinnacle Group has decided to open a new branch of the mall in Pune. This decision was very crucial for the management as it involves huge amounts.
- Identify and state the financial decision involved in the above case.
- State any two factors affecting the decision identified in (i) above.
State how 'Long term Investment Decision' and 'Short term Investment Decision' affect the business.
Which core financial management decision addresses where to invest funds?
Which core financial management decision addresses how to raise funds?
Which core financial management decision addresses how to distribute profits?
What is the aim when firms choose where to invest scarce funds?
Into which two types are investment decisions divided?
What is another name for a Long-term Investment Decision?
What is the key focus of a Long-term Investment Decision?
Which activities are examples of a Short-term Investment Decision?
What is the key focus of a Short-term Investment Decision?
What is required before committing funds to Capital Budgeting decisions?
When risk is the same, which project is preferred?
What is key to sound working capital management?
