Question

The decision for opening one more manufacturing unit is related to ___________ .

• A. Financing decision
• B. Investment decision
• C. Dividend decision
• D. General decision

Hint:

Expansion decisions such as opening new units are investment choices shaping the company's asset base and growth trajectory.

Answer 1

The Correct Option is B

Opening a new manufacturing unit involves committing capital resources to acquire fixed assets and expand production capacity. Such a decision falls under investment decisions which determine where and how much money the business should allocate to generate future returns.