The correct answer is A. Investment Decision.
Capital budgeting is the process of planning and managing a company’s long-term investments. It involves identifying, evaluating, and selecting the best investment opportunities for the company. Capital budgeting decisions are typically made by the company’s top management team, and they can have a significant impact on the company’s financial performance.
Investment decisions are made in a variety of areas, including new product development, plant expansion, and acquisitions. When making an investment decision, the company must consider the potential benefits of the investment, as well as the risks involved. The company must also consider the availability of funds and the cost of capital.
Capital budgeting is a complex process, but it is essential for the long-term success of a company. By making sound investment decisions, companies can grow and prosper.
Here is a brief explanation of each option:
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A. Investment Decision
Investment decisions are decisions about whether or not to make a long-term investment. These decisions can be made in a variety of areas, including new product development, plant expansion, and acquisitions. When making an investment decision, the company must consider the potential benefits of the investment, as well as the risks involved. The company must also consider the availability of funds and the cost of capital. -
B. Working Capital Management
Working capital management is the process of managing a company’s short-term assets and liabilities. This includes managing cash flow, inventory, and accounts receivable and payable. Working capital management is important because it can have a significant impact on a company’s profitability. -
C. Marketing Management
Marketing management is the process of planning and executing the marketing mix for a product or service. The marketing mix includes the product, price, place, and promotion. Marketing management is important because it can help a company to achieve its sales and profit goals. -
D. Capital Structure
Capital structure is the mix of debt and equity financing that a company uses. The capital structure decision is important because it can have a significant impact on a company’s risk and return.