Question

    Capital budgeting is done for

    _________.
    A both, evaluating short-term investment decisions and evaluating long-term investment decisions Correct Answer Incorrect Answer
    B evaluating short-term investment decisions Correct Answer Incorrect Answer
    C evaluating long-term investment decisions Correct Answer Incorrect Answer
    D evaluating medium-term investment decisions Correct Answer Incorrect Answer

    Solution

    Capital budgeting is done for evaluating long-term investment decisions. Capital budgeting is the process of evaluating and selecting long-term investment projects that align with an organization's strategic goals. It involves analyzing potential projects or investments to determine their feasibility, profitability, and alignment with the company's financial and operational objectives. This process helps organizations make informed decisions about allocating their financial resources to projects that are expected to yield long-term benefits.

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