The manner in which funds raised in capital markets are to be employed in productive activities is the subject of the ____________ decision.
A)Financing
B)Investment
C)Gearing
D)Capital budgeting

Question

Quizplus · Accepted Answer

The decision on how to use the funds raised from capital markets is the investment decision. Financing decision focuses on deciding how to raise funds, gearing decision is about the level of debt to use in funding the business, while capital budgeting is the process of allocating resources for long-term investments.

The Manner in Which Funds Raised in Capital Markets Are