A firm's capital investment proposals should reflect:
I. Capital budgeting process
II. Strategic planning process
III. Middle managers' ideas and views
A) I only
B) I and II only
C) I, II, and III
D) III only

Question

Quizplus · Accepted Answer

Capital investment proposals should reflect the capital budgeting process, which involves evaluating potential investments and deciding which ones to pursue based on financial criteria. Additionally, capital investment proposals should also reflect the strategic planning process, which sets the overall direction and goals for the firm. While middle managers may have ideas and views that could inform the capital budgeting process, they should not drive the investment decisions. Therefore, choice III is not included.

A Firm's Capital Investment Proposals Should Reflect