A good capital budgeting program requires that a number of steps be taken in the decision-making process. The first step is the explanation of data.
The first step involves searching for investment opportunities.

Question

Quizplus · Accepted Answer

The statement is incorrect. The first step in capital budgeting is to gather information and data on potential investment opportunities, not to search for them.

A Good Capital Budgeting Program Requires That a Number of Steps