SSC MCQ Question Ans. Capital Budgeting. Success and existence of any business organization depend on the long-term investment decision. To run the business most of the time entrepreneur has to take different decisions regarding fixed asset like the purchase of land, building, furniture, equipment, etc., and replacement of this fixed asset, modernization of production process, development of new products. Whether these long term decision will be profitable or not for the company? It requires the following different methods and principles for the proper evaluation of different alternative investment decision. Throughout this chapter, we will be able to know about different financial methods, principles that are used in the evaluation process for taking the long term investment decision.
SSC MCQ Question Ans. Capital Budgeting
Three friends Rahim, Karim and Shankar run their individual business. Rahim has been thinking to purchase a fridge for his grocery shop for the last few days. Six months back, Karim started his tailoring business with a sewing machine. Guessing the increasing demand he thought to purchase a new machine. On the other side, to start a saloon Shankar is thinking to purchase some essential furniture and hair cutting machine. Here, fridge purchase of grocery shop, sewing machine purchase of tailoring shop and wheelchair, hair cutting machine purchase for saloon are all long-term investment decisions.
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