Q. What do you signify by Investment Decisions?
Investment Decision: - The most significant function of financial management isn't only the procurement of external funds for the business but as well to make efficient and wise allocation of these funds. The allocation of funds signifies the investment of funds in various assets and other activities. It is as well known as 'Investment Decision" for the reason that a choice is to be made regarding the assets in which funds will be invested. The assets which can be obtained fall into two broad categories:
(i) Short-term or Current Assets.
(ii) Long-term or Fixed Assets.