Which of the Following Would Be Considered a Capital Budgeting

question 101

Multiple Choice

Which of the following would be considered a capital budgeting decision?

• A)planning to issue common stock rather than issuing preferred stock
• B)a decision to expand into a new line of products, at a cost of $500 million
• C)repurchasing shares of common stock
• D)issuing debt in the form of long-term bonds

---

Definitions:

Politicians

Individuals engaged in the art or science of government, often as elected officials who develop or vote on laws and policies.

Involuntary Transactions

Economic exchanges where at least one party participates without willing consent, often resulting from coercion or lack of viable alternatives.

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the net benefit to society.

Positive Externalities

Benefits experienced by third parties or the society at large as a result of an economic activity, without them directly paying for it.