Question

Proforma investment decisions relates to how the enterprise funds are required in different assets so that the enterprise is able to earn the highest possible returns on investment. (True/False)

Answer 1

Explanation:

Proforma investment decisions relates to how the enterprise funds are required in different assets so that the enterprise is able to earn the highest possible returns on investment

- The statement is false

Answer 2

Answer:

The given sentence is true.

Explanation:

• Performa's financial plan is related to how the enterprise's funds are invested.
• Investment in different assets so that the enterprise will be able to earn the highest possible returns on investment.
• An estimation of capital nature i.e. working capital and fixed assets should be clearly mentioned in the business plan.
• The entrepreneur should mention investment very clearly and carefully.
• These help to understand the total amount required by the entrepreneur.

Hence, Performa's investment decisions are related to how the enterprise funds are required and how to earn the highest possible returns on investment.