Capital budgeting is best defined by which of the following questions?
A)How will we fund our product and service choices?
B)What business are we in?
C)How will we manage our day-to-day financial needs?
D)What is our firm's best choice for corporate governance?

Question

Quizplus · Accepted Answer

Capital budgeting is the process of analyzing and evaluating potential long-term investment opportunities that will affect a company's financial operations. This process helps organizations determine which investments are worth pursuing and how to allocate resources for those investments. Therefore, the best definition of capital budgeting is related to investment decisions and not related to funding, day-to-day financial needs, or corporate governance.

Capital Budgeting Is Best Defined by Which of the Following