decisions focus on how a company will spend its financial resources on long-term projects that ultimately determine whether the firm successfully creates value for its owners.

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13-09-2022
Business

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decisions focus on how a company will spend its financial resources on long-term projects that ultimately determine whether the firm successfully creates value for its owners.

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rafikiedu08 rafikiedu08 · Answer 1 · 2022-09-16T10:58:32-04:00

Investment decisions are made with an eye on how a business will allocate its financial resources to long-term initiatives that will ultimately determine whether the company is successful in adding value for its owners.

What is an Investment decisions?

A decision regarding how, when, where, and how much money will be invested is known as an investment decision. This decision is made by the directors or managers.
Investing choice It has to do with how a company's funds are to be invested in various assets so that the company can generate the maximum feasible return for the investors.
Long-term investment decisions, commonly referred to as capital budgeting when funds are committed on a long-term basis, are possible.
The balances of cash, inventories, and debts are taken into consideration while making short-term investment decisions, commonly referred to as working capital decisions.
There are long-term and short-term investment decisions.
Decision tools are frequently used to support investment decisions.

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