Question : What is the name of decisions taken to invest in fixed assets?
Option 1: Investment decision
Option 2: Capital budgeting decisions
Option 3: Both a and b
Option 4: None of the above
Correct Answer: Both a and b
Solution : Management of fixed capital involves allocation of firms capital to different projects for assets with long term implication for the business. The decisions taken to invest in fixed assets are known as investment decisions or capital budgeting decisions.
Hence, option C is correct.
Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.
Question : Which of the following statement is incorrect?
Question : These decisions affect the growth,profitability and risk of business in the long run.
Question : It is the money invested in fixed assets which is to be used over a long period of time. Which capital is highlighted in the given statement?
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