Discussion
Of what is an investment decision an example?
Answer: D
Correct answer: Non-programmed decision
A programmed decision is one that recurs in a familiar form and can be settled by an established rule or procedure - reordering stock at a set level, for instance. An investment decision is the opposite: it is infrequent, involves large sums committed for years, faces conditions that have not arisen before, and requires judgement rather than a rule. Such decisions are taken at senior level for exactly that reason.
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