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QUESTION 5 Identify and describe finance and investment decisions. Answer in no more than 250-300 words.

QUESTION 5

Identify and describe finance and investment decisions. Answer in no more than 250-300 words.

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Answer #1

Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Basically, finance represents money management and the process of acquiring needed funds. Finance can be divided broadly into three distinct categories: public finance, corporate finance, and personal finance.

Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities. Simply, selecting the type of assets in which the funds will be invested by the firm is termed as the investment decision.

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