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    5. What is the primary objective of capital budgeting?

    Question

    What is the primary objective of capital

    budgeting?
    A Cost reduction Correct Answer Incorrect Answer
    B Resource allocation Correct Answer Incorrect Answer
    C Tax saving Correct Answer Incorrect Answer
    D Sales maximization Correct Answer Incorrect Answer

    Solution

    Capital budgeting helps management allocate funds to projects that generate the highest return over time, aligning with strategic goals.

    Practice Next
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