Capital budgeting is best described as the ________.
A) process that determines which countries will receive capital investment funds
B) procedure for determining the proper mix of debt and equity for a country
C) proper management of a country's current assets and liabilities
D) simplification of corporate tax procedures

Question

Quizplus · Accepted Answer

Capital budgeting is the process of making investment decisions in long-term assets and determining which projects to invest in. It involves analyzing the potential profitability and risks of different investment opportunities and deciding which ones are most likely to achieve the company's long-term goals. It has nothing to do with determining the proper mix of debt and equity, current asset and liability management or simplification of corporate tax procedures.

Capital Budgeting Is Best Described as the ________