The primary function of the capital budget is to forecast the funds required for future investments that must be raised through external funding,that is,by selling stock or bonds.

Question

Quizplus · Accepted Answer

The primary function of the capital budget is to plan for long-term investments in assets and projects, determining the optimal allocation of capital resources to maximize a company's value, not specifically to forecast funds for raising through external funding.

The Primary Function of the Capital Budget Is to Forecast