Question

______ refers to the decisions regarding where to invest so as to earn the  highest possible returns on investment.

Options

• Investment decisions

• Financial decisions

• Dividend Decisions

• All of the above

Answer 1

Investment decisions

Explanation - 

Investment decisions are those made to determine where to put money in order to get the best possible returns. Long-term as well as short-term investment decisions might be made.

Long-term investment decisions, often called Capital Budgeting, have an impact on a company's long-term earning potential and profitability. Long-term investment decisions include, for example, purchasing a new machine or constructing a new structure.

Working capital decisions, often known as short-term investment decisions, have an impact on a company's day-to-day operations. Cash or bill receivables decisions, for example, are short-term investment decisions.