Financial Management - Study Mode
[#326] The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called ____________.
Correct Answer
(B) an investment decision
Explanation
Solution: The decision to invest a substantial sum in any business venture expecting to earn a minimum return is called an investment decision. The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities.
[#327] Which of the following is not true for capital budgeting?
Correct Answer
(B) Opportunity costs are excluded
[#328] Cash discount terms offered by trade creditors never be accepted because:
Correct Answer
(D) None of the above
[#329] Which of the following is not considered by Miller-Orr Model?
Correct Answer
(D) Total annual requirement of cash
[#330] Credit Policy of a firm should involve a trade-off between increased:
Correct Answer
(B) Profit and Increased Costs of Receivables