The process of planning and managing a firm's long-term investments is called:
A)capital budgeting.
B)agency cost analysis.
C)financial depreciation.
D)working capital management.
E)capital structure.

Question

Quizplus · Accepted Answer

Capital budgeting involves the process of evaluating and selecting long-term investments that align with the firm's goals and objectives. This includes analyzing financial data, risk assessment, and determining the best sources of capital for the investment. Agency cost analysis, financial depreciation, working capital management, and capital structure are all important aspects of financial management, but they do not specifically address the long-term investment planning and management process.

The Process of Planning and Managing a Firm's Long-Term Investments