Which decision is related to capital budgeting?

Capital budgeting is a critical financial management process focused on evaluating and selecting long-term investment projects. These decisions are fundamental to a company's growth, expansion, and future profitability. Therefore, the correct answer is Long-term investment decision.

• Long-term investment decision (C) directly relates to capital budgeting as it involves allocating resources to projects or assets that will generate returns over an extended period, such as purchasing new machinery, building a new plant, or investing in research and development.
• Dividend decision (A) pertains to how much of a company's profits should be distributed to shareholders versus retained for reinvestment, which falls under dividend policy, not capital budgeting.
• Working capital decision (B) involves managing current assets and liabilities to ensure efficient day-to-day operations, focusing on short-term liquidity rather than long-term asset acquisition.
• Financing decision (D) concerns how a company raises capital (e.g., through debt or equity) to fund its operations and investments, which is distinct from the decision of where to invest that capital.