The three basic types of issues addressed by the study of finance are
A) capital budgeting, capital structure decisions, and working capital management.
B) capital budgeting, working capital management, and investment analysis.
C) capital structure decisions, working capital management, and sustained profitability.
D) capital budgeting, investment analysis, and cash management.

Question

Quizplus · Accepted Answer

The three basic types of issues addressed by the study of finance are capital budgeting (which involves analyzing potential investments and deciding which ones to undertake), capital structure decisions (which involve determining how to finance those investments), and working capital management (which includes managing a company's short-term assets and liabilities). Option B is not accurate as investment analysis is covered in capital budgeting. Option C is incorrect since sustained profitability involves other factors beyond financial management. Option D is inaccurate since cash management is also included in working capital management.

The Three Basic Types of Issues Addressed by the Study