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Questions and Answers
What is a key aspect of capital budgeting?
What is a key aspect of capital budgeting?
- Short-term financial planning
- Long-term investment in human resources
- Allocation of capital in permanent assets (correct)
- Day-to-day management of cash flow
What is the primary goal of maintaining a balance between fixed and current assets?
What is the primary goal of maintaining a balance between fixed and current assets?
- To maximize profitability and maintain liquidity (correct)
- To increase market value
- To reduce costs
- To minimize risk
What makes capital budgeting a difficult decision?
What makes capital budgeting a difficult decision?
- The uncertainty of estimating costs and benefits (correct)
- The lack of data available
- The complexity of financial models
- The ease of estimating costs and benefits
What is a secondary aspect of capital budgeting?
What is a secondary aspect of capital budgeting?
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What is the impact of capital budgeting on a firm's success?
What is the impact of capital budgeting on a firm's success?
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