When Considering a Capital Budgeting Project the fiNancial Manager Should

question 73

Multiple Choice

When considering a capital budgeting project the financial manager should consider:

• A) Only the size of the project.
• B) Only the timing of the project cash flows.
• C) Only the risk of the project cash flows.
• D) Only the size and timing of the project cash flows.
• E) The size, timing, and risk of the project cash flows.

---

Definitions:

Passive Investor

An individual or entity that invests in stocks, bonds, or other investments without taking an active role in the management or their investment decisions.

Obligations

Duties or responsibilities imposed by law, contract, or moral duty.

Corporation

A legal entity formed under state law that is separate from its owners, providing limited liability and the ability to raise capital through the issuance of shares.

Organizer

A person responsible for planning and conducting events or activities, often involving logistical coordination and management.