Which of the Following Statements Is True of the Capital

question 89

Multiple Choice

Which of the following statements is true of the capital budgeting used in international businesses?

• A) Capital budgeting does not provide a connection between cash flows to the parent and subsidiaries.
• B) Its basic framework is vastly different from the framework of domestic capital budgeting.
• C) Capital budgeting does not consider the cash flows between subsidiaries of a firm.
• D) It enables top managers to compare different investment alternatives in an objective fashion.

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Definitions:

Decreases

A reduction in size, quantity, or degree.

Punishment

A consequence imposed for breaking a rule or law, intended to discourage the behavior.

Operant Responding

A technique of teaching that involves giving rewards for good behavior and punishments for bad behavior.

Negative Punishment

Removing a desirable stimulus to decrease the likelihood of a behavior being repeated.