Capital investment decisions
Capital investment decisions are long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. On the other hand, short term decisions deal with the short-term balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).
Now , people have more options to choose their living standards with the form of necessities and the propaganda of saving the resources for further usage.
Nevertheless, more often we had seen this theory of saving money mostly became popular to the middle class people where they had less to spend and more to think of the savings with respect to family and their social responsibilities.
How much one can spend and live in these circumstances became the question of hour?
Many theories responding to the same situations got birth because of the functionality for the retro system research attained.Corporate affairs and many growth has always taken the toll of common man.Decisions regarding the tax standard, price hikes and product & supply chart are mostly taken into account with the idea of layer of people who are earning good money and sustaining the path to to live lavishly.
But the common man or you can say the middle class genre does not some up with the defined trace in corporate world.
Purpose to include this corporate finance sector into this discussion was just to interrupt the mind of those who has never came up with the thought of making a financial report keeping every level of earnings into consideration.