The firm's purchase of real assets is also referred to as the:
A)capital structure decision.
B)CFO decision.
C)financing decision.
D)investment decision.

Question

Quizplus · Accepted Answer

The firm's purchase of real assets, such as property, plant, and equipment, refers to the investment decision. This decision involves the allocation of funds towards acquiring or creating assets that the firm will use to generate future returns. The capital structure decision pertains to how the firm will finance these investments and involves determining the mix of debt and equity financing. The CFO decision, while important, is not a specific decision related to the purchase of real assets. The financing decision primarily involves how the firm will raise capital and is related to the capital structure decision.

The Firm's Purchase of Real Assets Is Also Referred to as The