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Subjects

Business Studies

Investment decision

In Class 12 Business Studies, the topic Investment Decision explains how a business chooses where to commit funds, especially for long-term assets and projects. Students learn why these decisions are important, how expected cash inflows, investment cost, returns, risk, and the time value of money influence the choice, and how financial management supports the careful allocation of limited resources. The topic also helps them understand the effect of investment decisions on profitability, growth, and the future performance of a business.

Hard · Level 1 · 2 questions

Practice questions

01If two business opportunities show similar profit, which factor should receive more importance while choosing the better one?

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Answer and explanation

02In which situation has the entrepreneur taken a calculated risk?

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Answer and explanation

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