Vidyalelo
Commerce · Q31

Financial Management

Graduate and Post Graduate · Commerce · question 31

Q31

The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called ____________.

A.
capital positioning
B.
capital structuring
C.
capital rationing
D.
capital budgeting
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called capital budgeting. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.