_______________ is the focus of corporate ﬁnance as it is concerned with making the optimal choice between project alternatives.
A) Capital budgeting.
B) Capital structure.
C) Payback period.
D) Short-term budgeting.
E) Capital Allocation.

Question

Quizplus · Accepted Answer

Capital budgeting is the process of evaluating and selecting long-term investment projects that will yield the highest return for the company. It involves analyzing the cash flows associated with each project, estimating the project's risks, and determining whether the project will create value for the company. Therefore, capital budgeting is the focus of corporate finance as it helps companies make the optimal choice between project alternatives.

_______________ Is the Focus of Corporate ﬁNance as It Is