Which of the Following Statements Holds True for Capital Budgeting

question 73

Multiple Choice

Which of the following statements holds true for capital budgeting?

• A)It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
• B)It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
• C)It refers to raising capital by selling shares of stock.
• D)It refers to a set of procedures used to estimate the economic value of an owner's interest in a business.
• E)It refers to a technique that companies use to reduce the costs of cross-border payments between subsidiaries.

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Definitions:

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Basic Trust

A term coined by psychologist Erik Erikson describing the first stage of psychological development wherein a child learns whether the world is trustworthy and safe.

Erikson

A psychologist known for his theory on the psychosocial development of human beings.

Virtue

A trait or quality deemed to be morally good and thus is valued as a foundation of principle and good moral being.