Question

The area of finance that deals with long-term investment decisions is known as

Select one:

a. capital budgeting

b. working capital management

c. financial strategy

d. capital structure

Answer 1

Working Capital Management: Working Capital management = Current Assets – Current Liabilities

It means working capital is related with only short term decision.

Financial Strategy: Financial strategy means managing the finance in a way to maximization of wealth for the shareholder’s. This strategy may be short term and long term alos

Capital Structure: Capital structure means the amount invested in Equity capital and amount invested in debt. This structure may be short term and long term also

Capital Budgeting: Capital Budgeting means the decision taken for investment in Fixed assets of the organization which is always in long term investment.

Answer =Option A = Capital Budgeting