This is the assumption that decisions about which projects to fund are separate from the decisions about how to fund them.

Question

Quizplus · Accepted Answer

The separation principle refers to the idea that decisions pertaining to funding projects should be separate from the decisions about how to fund them. In other words, the decision to invest in a particular project should not depend on how the project is going to be financed. This helps maintain objectivity and allows for a clear evaluation of projects based on their merits rather than their financing options. The other options (A, B, and D) pertain to different financial principles and concepts that are not directly related to this specific assumption.

This Is the Assumption That Decisions About Which Projects to Fund