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Business Studies · 2023 · 4 marks
CBSE 2023 · Region 2 · Set 3 · Q27
‘Zenith Mall’ is a famous shopping mall in Mumbai,owned by ‘Pinnacle Group'. It is very popular for itsinternational and national brands of fashionableclothes, restaurants, cinema halls and food courts.The management of Pinnacle Group has decided toopen a new branch of the mall in Pune. This decisionwas very crucial for the management as it involveshuge amounts.(i)Identify and state the financial decision involved inthe above cane.(ii)State any two factors affecting the decisionidentified in (i) above.
‘Zenith Mall’ is a famous shopping mall in Mumbai,
owned by ‘Pinnacle Group'. It is very popular for its
international and national brands of fashionable
clothes, restaurants, cinema halls and food courts.
The management of Pinnacle Group has decided to
open a new branch of the mall in Pune. This decision
was very crucial for the management as it involves
huge amounts.
(i)
Identify and state the financial decision involved in
the above cane.
(ii)
State any two factors affecting the decision
identified in (i) above.
Marking-scheme solution
(i)
Investment decision
The investment decision relates to how the firm’s
funds are invested in different assets.
(ii)
Factors affecting Investment decision :
(a)
A company should carefully analyse the cash flows
that will be generated over the period, as a series of
cash receipts and payments over the life of an
investment.
(b)
The rate of return expected from a proposal involving
huge sums is a factor affecting investment decision.
(c)
There are different investment criteria involved with
each proposal like the amount of investment, interest
rate, etc. which should be considered before selecting
a particular project.
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.