Which of the Following Is the Best Definition of Sustainable

question 104

Multiple Choice

Which of the following is the best definition of sustainable income?

• A)Sustainable income is a measure of solvency that excludes capital expenditures.
• B)Sustainable income is the same as net income.
• C)Sustainable income is income that is unusual in nature and infrequent in occurrence.
• D)Sustainable income is the most likely level of income to be obtained in the future.

---

Definitions:

Capital Budget

A budget allocating funds for major capital, or investment, projects, typically involving large sums of money and expected to generate returns over time.

Cost of Capital

The cost of funds used for financing a business, typically considered as the weighted average of both debt and equity costs.

Investment Opportunities

Options available to investors looking to allocate resources in a way that generates a financial return.

Mutually Exclusive

Decisions or events that cannot occur at the same time, implying that the selection of one precludes the selection of another.