Question

Companies usually buy __________ assets. These include both tangible assets such as _______________ and intangible assets such as _____________. To pay for these assets, they sell _____________ assets such as_____________. The decision about which assets to buy is usually termed the _____________ or _______________ decision. The decision about how to raise the money is usually termed the _____________ decision.

Answer 1

Answer:

Companies usually buy ____real______ assets. These include both tangible assets such as ___property, plant, and equipment____________ and intangible assets such as ____patents, copyrights, and brands_________. To pay for these assets, they sell ____financial_________ assets such as_____bonds________. The decision about which assets to buy is usually termed the _____investment________ or _____capital budgeting__________ decision. The decision about how to raise the money is usually termed the ____financing_________ decision.

Explanation:

Real assets can be tangible or intangible assets.  They are also known as long-term or fixed assets, given their time horizon before they are fully consumed in production.  Real assets, which possess intrinsic value, can be distinguished from financial assets, which are based on contractual claims or securities, including stocks and debts. In any management role, decisions are made about capital budgeting or investment.  These also require financing decisions to fund the investments.