Question
__ : finance activity involving making decisions about a firm's investments. A. acquisition of funds B. administration of assets C. statement of owner's equity
Answer
4.3
(151 Votes)
Harvey
Elite · Tutor for 8 years
Answer
B
Explanation
This question is about the primary areas of corporate finance. An investment decision involves the method of investment in fixed assets like plant, machinery, land, buildings, etc. These are the decisions taken by finance manager which come under finance activity involving making decisions about a firm's investments. Options given for the question include acquisition of funds, administration of assets, and statement of owner's equity. Acquisition of funds refers to the process of managing and sourcing capital for a company. Administration of assets refers to the management of a client's investments by a financial services company for a fee. Statement of owner's equity is the financial document that shows the changes in the owner's investments for a accounting period.