Which of the Following Describes the Capital Budgeting Evaluation Process

question 86

Multiple Choice

Which of the following describes the capital budgeting evaluation process?

• A)The capital budget committee submits its proposals to the officers of the company who choose which projects will be forwarded to the shareholders for ultimate approval.
• B)The officiers of the company submit their proposals to the capital budget committee who choose which projects will be forwarded to the shareholders for ultimate approval.
• C)The officiers of the company submit their proposals to the capital budget committee who choose which projects will be forwarded to the board of directors for ultimate approval.
• D)The capital budget committee submits its proposal to the officers of the company who choose which projects will be forwarded to the board of directors for ultimate approval.

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Definitions:

Financial Market

The marketplace where buyers and sellers interact to trade financial instruments, such as stocks, bonds, currencies, and derivatives, often within an institutional framework.

Crowding-Out

A situation where increased government spending leads to a reduction in private sector spending.

Government Purchases

Expenditures made by the government for goods and services that are necessary for the public sector and to support economic activity.

National Output

The total value of goods and services produced by a country's economy over a specific period of time. It's synonymous with gross domestic product (GDP).