Which of the following is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the company's value?
A) capital evaluation
B) capital allocation
C) budget analysis
D) capital budgeting

Question

Quizplus · Accepted Answer

Capital budgeting is the process of selecting capital expenditures that are most likely to maximize the company's value. It involves analyzing the potential return on investment and the associated risks of various capital projects, and then selecting those projects that are expected to generate the highest returns. Capital allocation is more focused on distributing funds across different projects or business units, while budget analysis refers to the overall process of creating and managing a budget for the organization. Capital evaluation is not a commonly used term in financial analysis or planning.

Which of the Following Is the Process of Selecting the Capital