Capital budgeting is the process of evaluating and selecting short-term investments consistent with the firm's goal of owner wealth maximization.

Question

Quizplus · Accepted Answer

Capital budgeting refers to the process of evaluating and selecting long-term investments that are consistent with the firm's goal of owner wealth maximization. Short-term investments fall under the category of working capital management, which is a separate process.

Capital Budgeting Is the Process of Evaluating and Selecting Short-Term