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How is an investment decision different from a financing
decision?
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Answer / abdurahiman karuthedath
investment dicision involve investment of companies capital
in current and fixed asset. financing dicicion involve find
out the source f fund requeired to invest in busibess. so
financing dicision involve find out the source for
aquiring fund and investment dicision involve invest this
aquired fund inbusiness by pychasing fixed and current
assets
| Is This Answer Correct ? | 35 Yes | 9 No |
Answer / bilal ahmed khan
The financing decision involves the sources of funds which
are needed for the business investment. we choose among
different resources to acquire funds from them.
For example, we should sale out our new shares, borrowing
from a bank or taking credit from the suppliers.
while in the investment decision the funds acquired are
invested or we may say the comapnay's capital is invested
in purchasing the assets(fixed assets and current assets).
| Is This Answer Correct ? | 22 Yes | 0 No |
Answer / venu
From investor point of view "financial decisions" are linked with debts like bonds, debentures. where returns are pre-fixed % and less or no risk.Where as "investment decisions" are related to investing in equities like equity shares, pref.shares. where risk is high at the same time probability of returns would be high when compare with debentures.
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / dayal singh
investment is direct outflow of money and financing decision
of management of total outflow of funds
| Is This Answer Correct ? | 10 Yes | 10 No |
Answer / jon
investment decisions determine both the mix and the type of
assets held by the firms while financing decisions determine
both nix and the type of financing used by the firm.
| Is This Answer Correct ? | 3 Yes | 4 No |
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