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GarryVolchara [31]
3 years ago
13

Fairfax Pizza borrowed 745,000 dollars to build a new restaurant for 745,000 dollars. The decision to spend 745,000 dollars on t

he restaurant is best classified as an example of what type of decision?
O Capital budgeting decision
O Financing decision
O stakeholder decision
O Agency decision
Business
1 answer:
EastWind [94]3 years ago
8 0

Answer:

Financing decision

Explanation:

Financing decision is concerned with borrowing and allocating funds for investments.

As such, the decision to borrowed 745,000 dollars and use the fund to build a new restaurant for 745,000 dollars is a financing decision.

Capital Budgeting decision-making process involves plans around any long term capital expenditures whose returns (cash inflows and outflow) are expected to be earned in more than a year.

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