Vidyalelo
Commerce · Q29

Financial Management

Graduate and Post Graduate · Commerce · question 29

Q29

The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called ____________.

A.
working capital decision
B.
an investment decision
Answer
C.
a production decision
D.
a sales decision

Answer: Option B

Solution

Answer: Option B
Solution:
The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called an investment decision. The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities.