Question

‘Game of Clones’, a reputed amusement company, has decided to run an advertising campaign for which it is hiring various celebrities. The campaign involves an expenditure of ₹ 150 Crores. Identify the financial decision involved in the above case.

पर्याय

• Long-term investment decision

• Financing decision

• Working capital decision

• Dividend decision

Answer 1

Long-term investment decision

Explanation:

The decision to spend ₹ 150 crores on an advertising campaign is a long-term investment decision (also known as a capital budgeting decision) because it involves a large amount of funds being invested to achieve future benefits, such as brand building, higher sales, and market growth. It is not about raising funds or managing day-to-day expenses but about committing capital for long-term returns.