Which of the Following Statements Is Correct

question 14

Multiple Choice

Which of the following statements is correct?

• A)Capital budgeting is the process of identifying, evaluating, and implementing a firm's financing strategies.
• B)Capital budgeting seeks to identify projects that will reduce a firm's competitive advantage and by so doing decrease shareholders' wealth.
• C)By its nature, capital budgeting involves short-term projects.
• D)Capital budgeting projects usually require small initial investments and may involve acquiring or constructing plant and equipment.
• E)none of the above statements are correct

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Definitions:

Just-In-Time (JIT) Scheduling

A logistics strategy where materials and products are produced or delivered only as needed, reducing inventory costs.

Timely Inventory Control

The practice of managing and optimizing stock levels to meet demand without incurring excess or shortage, ideally in a timely manner.

Efficient Production Planning

A process that ensures resources are used effectively to meet production goals, minimizing waste and costs while maximizing output.

Financial Ratios

Quantitative measures derived from financial statements that are used to evaluate a company's financial health, performance, and viability.