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Rajat is planning the break up of his finance to know the amount of capital that he will utilize to purchase fixed assets and current assets. Identify the financial decision taken by Rajat

Solution

Correct Option: 1

Investment decision relates to how the firm's funds are invested in different assets. It involves long-term investment decisions (capital budgeting) for fixed assets and short-term decisions (working capital) for current assets. Deciding how much capital to put into fixed and current assets is an investment decision.

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