________ is the process of evaluating and selecting long-term investments consistent with the firm's goal of owner wealth maximization.
A) Recapitalizing assets
B) Capital budgeting
C) Ratio analysis
D) Restructuring debt

Question

Quizplus · Accepted Answer

Capital budgeting is the process of evaluating and selecting long-term investments that will generate future cash flows and profits. It involves analyzing potential projects and determining which ones are worthwhile investments that will increase the value of the firm and ultimately maximize the owner's wealth. Recapitalizing assets, restructuring debt, and ratio analysis are all important financial management activities but are not directly related to the selection of long-term investments through capital budgeting.

________ Is the Process of Evaluating and Selecting Long-Term Investments