Question

"It involves committing the finance on a long-term basis." __________ concept of Financial Management is indicated from the above statement.

• A. Capital budgeting decision
• B. Financial leverage
• C. Capital structure decision
• D. Financial risk

Hint:

Capital budgeting = deciding which long-term projects or assets to invest in for sustained growth and profitability.

Answer 1

The Correct Option is A

Capital budgeting decisions refer to the process of planning and managing a company's long-term investments in projects, machinery, plants, or other fixed assets. These decisions involve significant financial commitment and impact the firm's future growth and profitability, requiring thorough evaluation of potential returns and risks before allocation of resources.