Which financial decision relates to committing the company's finances on a long term basis to different assets?

Option 1 -> Capital structure decision relates to determining the optimal mix of debt and equity to finance the company, not about allocating funds to specific assets.

Option 2 -> Financing Decision focuses on identifying and selecting sources of funds (debt, equity, etc.) to meet the company's capital requirements, not on asset allocation.

Option 3 -> Capital Budgeting decision involves evaluating and selecting long-term investment projects and acquiring assets like machinery, equipment, and infrastructure that commit funds for extended periods.

Option 4 -> Working Capital Decision deals with managing short-term assets and liabilities for day-to-day operations, not long-term asset commitments.

Hence, Option 3: Capital Budgeting decision -> This is the investment decision that involves committing company finances to acquire and invest in long-term assets such as plant, machinery, land, and buildings. These assets generate returns over multiple years and require careful evaluation of cash flows, risks, and returns. -> correct