Question

What is investment decision in financial management?

Answer 1

At present, efficient use and allocation of capital are the most important functions of financial management. Practically, this function involves the decision of the firm to commit its funds in long-term assets together with other profitable activities.However, the decisions of the firm to invest funds in long-term assets needs considerable importance as the same tends to influence the firm’s wealth, size, growth and also affects the business risk. No doubt, the primary consideration of all types of investment decisions is the rate of earning capacity,