Capital Investment Decision for the Development of Business Organization: A Conceptual ReviewJournal: International Journal of Science and Research (IJSR) (Vol.10, No. 7)
Publication Date: 2021-07-15
Authors : Lakshmi Devaraj;
Page : 1404-1407
Keywords : capital investment; debts; budgeting;
In this review, the author focuses on business investment and corporate promotion and sets up business strategies. The objective of a business in making investment capital decisions is to maximize the shareholder's wealth by buying and profiting assets and to do this, as the owner of an enterprise, if the capital investment projects can be detected and determined, would produce a cash flow that is positive and when resources are limited, as in the case of start-up or investment projects. Capital investment decisions are mostly determined by the rating process and the identification of capital investment firms. The corporation should determine which of the investments made would guarantee its business the highest value and therefore make a decision on its capital investment. In general, decisions on capital investment have a number of limitations. The amount of funds collected by an organisation is limited and so reduces the choice of companies to an extent by means of various investments in the project. When the debt of companies is raised, the debt-to-equity ratio of companies is elevated, which makes it difficult for an enterprise to raise additional debts. The present study is based on the secondary data related to capital investment decisions for business organisation.
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