Capital budgeting is
A) the process of identifying, evaluating, and implementing a firm's investment opportunities.
B) the process of identifying, evaluating, and implementing a firm's objectives.
C) the process of identifying, evaluating, and implementing a firm's strategic plans.
D) the process of identifying, evaluating, and implementing a firm's financing requirements.

Question

Quizplus · Accepted Answer

Capital budgeting is the specific process of identifying, evaluating, and implementing a firm's investment opportunities. This includes analyzing potential projects or investments, determining their financial feasibility, and deciding whether to pursue them or not. The other choices (B, C, and D) are related to different business processes and not specific to capital budgeting.

Capital Budgeting Is