Manag., November-2017 – Q20
0. Capital budgeting is concerned with :
- Option : D
- Explanation : Capital budgeting is the process by which corporations decide what investments to make in long-term real capital assets and investment projects and how to finance those investments with the proceeds from newly issued or existing financial capital claims. Most firms undertake a serious capital budgeting exercise at least annually. When a firm’s funds are limited and its capital budget constrained by an unwillingness or inability to issue new securities, the capital budgeting process is also sometimes called capital rationing or capital allocation.
