It is important that firms adopt a common standard for the capital budgeting process for choosing among foreign and domestic projects.

Question

Quizplus · Accepted Answer

Adopting a common standard for the capital budgeting process helps ensure that all projects are evaluated on the same basis and that the company's resources are allocated to the most promising opportunities regardless of their location. This can help prevent biases in favor of domestic projects over foreign ones, or vice versa.

It Is Important That Firms Adopt a Common Standard for the Capital