In order to allocate financial resources, MNCs may use _________ to quantify and compare the benefit, the cost, and the risk of an investment.

Question

Quizplus · Accepted Answer

Capital budgeting is the process that helps MNCs to allocate financial resources by evaluating and analyzing the profitability of different investment options. It involves quantifying and comparing the costs, benefits, and risks associated with each investment opportunity. Through capital budgeting, MNCs can determine which investment option is the most viable in terms of generating returns for shareholders, maximizing profits, and minimizing risks.

In Order to Allocate Financial Resources, MNCs May Use _________