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What is investment decision in Financial Management


An investment decision is a well-planned action that allocates financial resources to obtain the highest possible return. The decision is made based on investment objectives, risk appetites, and the nature of the investor, i.e., whether they are an individual or a firm.

What is investment decision and example?

The two types of investment are long term and short term. An example of a long term capital decision would be to buy machinery for production. This is important as it affects the long term earnings of the firm. Short term investment is related to levels of cash, inventories, etc.

What do you mean by investing decision?

Investment decision refers to selecting and acquiring the long-term and short-term assets in which funds will be invested by the business.




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