Multiple Choice Questions on Investment decisions also known as Capital Budgeting decisions affect a firm s earning capacity and ........... for Common University Entrance Test (CUET) Preparation

Back to Main Page

Multiple Choice Questions

Investment decisions also known as Capital Budgeting decisions affect a firm s earning capacity and ...........

Business Studies (CUET) FINANCIAL MANAGEMENT
    Download Solution PDF
    Investment decisions, also known as Capital Budgeting decisions, affect a firm’s earning capacity and must be taken with care. Long-term decisions, such as acquiring a new fixed asset, involve large investments and are often irreversible.
    Investment decisions are always reversible.Incorrect Answer
    Capital Budgeting affects short-term earnings only.Incorrect Answer
    Long-term decisions require careful consideration.Correct Answer
    Capital Budgeting involves annual decisions on small investments.Incorrect Answer
    छोटे Courses बड़े Results
    Master FINANCIAL MANAGEMENT
    Prepare through Micro-courses
    Try Now
    Explanation:

    Investment decisions, especially long-term, require careful consideration due to their impact.

    They involve significant investments and are often irreversible.

    Capital Budgeting decisions influence long-term earning capacity, not just short-term earnings.

    Proper evaluation is essential to avoid adverse financial impacts.

    By: Parveen Bansal
    ProfileResources

    Let's Discuss

    Master
    FINANCIAL MANAGEMENT
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free