CBSE Class 12 Business Studies 2023 Outside Delhi set 1

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'Zenith Mall' is a famous shopping mall in Mumbai, owned by 'Pinnacle Group'. It is very popular for its international and national brands of fashionable clothes, restaurants, cinema halls and food courts.
The management of Pinnacle Group has decided to open a new branch of the mall in Pune. This decision was very crucial for the management as it involves huge amounts.
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Question : 34
Total: 45
Identify and state the financial decision involved in the above case.
Solution:  
Investment Decisions:
1. Investment decision means judicious investment of firm's resources, from the available alternative proposals and choosing the cheapest one, which earns highest possible return for the investors.
2. The various resources available with an organisation are scarce and can be put to alternate use. A firm must choose where to invest, wisely so as to earn the highest possible profits.
3. Investment decisions are decisions about how the firm's funds are invested in different assets that is, in different investment proposals.
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