Capital budgeting involves:
A) how a company's day-to-day financial matters should be managed.
B) how the company should finance its assets.
C) which productive assets the company should employ.
D) all of the above.

Question

Quizplus · Accepted Answer

Capital budgeting involves making decisions about which productive assets the company should employ, such as which projects to pursue, which assets to acquire, and which investments to make. It is focused on long-term financial planning and involves analyzing potential costs and benefits of different investment options. While financing may be a factor in these decisions, it is not the primary focus of capital budgeting. Managing day-to-day financial matters is part of financial management but not part of capital budgeting. Therefore, the correct choice is C.

Capital Budgeting Involves