Which of the Following Statements Is Most Correct

question 108

Multiple Choice

Which of the following statements is most correct?

• A) Sunk costs should be ignored in capital budgeting.
• B) Opportunity costs should be ignored in capital budgeting.
• C) Externalities should be ignored in capital budgeting.
• D) Answers a,b,and c are all correct.
• E) Answers a,b,and c are all incorrect.

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Definitions:

Buyer and Seller

The parties involved in the exchange of goods or services for payment, where the buyer purchases and the seller provides the product or service.

Trust

The belief that another will act as they are expected to act.

Relationships

Connections or interactions between individuals or entities, characterized by mutual interest, involvement, or dependence.

Plan

A method of achieving an end.