Home > Business > Detail
search_icon
Question

Which of the following is NOT true about capital budgeting? a. It involves identifying projects that will add to a firm's value. b. It involves investing large capital. c. It allows a firm to reverse the decision of large capital investments at any time. d. It allows a firm's management to analyze potential business opportunities and decide on which ones to undertake.

Answer

Please pay attention, students. This statement is FALSE regarding capital budgeting. Capital budgeting is a method used by companies to evaluate potential large projects or investments. It's an essential tool for businesses because it provides accountability and measurability. When creating a capital budget, projects that will increase a company's value are taken into consideration, which involves a significant amount of expenditure. With this method, company management can assess possible business prospects and select which ones to pursue. Therefore, option C is the correct answer. If you want to learn more about capital budgeting, check out this link: brainly.com/question/28304454 #SPJ1