The correct answer is: B. Financing decision
A lease is a financing decision because it is a way for a company to acquire the use of an asset without having to purchase it outright. This can be a good option for companies that do not have the cash on hand to purchase an asset or that do not want to tie up their capital in an asset.
A working capital decision is a decision about how to manage a company’s short-term assets and liabilities. This includes decisions about how much inventory to carry, how much debt to take on, and how to manage cash flow.
A buy or make decision is a decision about whether to purchase an item or to produce it in-house. This decision is based on a number of factors, including the cost of the item, the availability of resources, and the company’s capabilities.
An investment decision is a decision about how to allocate a company’s resources. This includes decisions about whether to invest in new products, new markets, or new technologies.
In conclusion, a lease is a financing decision because it is a way for a company to acquire the use of an asset without having to purchase it outright. This can be a good option for companies that do not have the cash on hand to purchase an asset or that do not want to tie up their capital in an asset.