Which one of the following terms is defined as the management of a firm's long-term investments?
A) Working capital management
B) Financial allocation
C) Agency cost analysis
D) Capital budgeting
E) Capital structure

Question

Quizplus · Accepted Answer

Capital budgeting is the process of making long-term investment decisions of a firm. It involves analyzing and selecting investment projects that are expected to yield positive returns and add value to the firm. This decision-making process involves estimating the future cash flows of the investment, assessing the risks associated with the investment, and determining the appropriate financing for the investment. The other options listed do not specifically relate to long-term investments.

Which One of the Following Terms Is Defined as the Management