Which of the Following Is a Capital Budgeting Decision

question 28

Multiple Choice

Which of the following is a capital budgeting decision?

• A) Should the firm borrow money from a bank or sell bonds?
• B) Should the firm shut down an unprofitable factory?
• C) Should the firm buy or lease a new machine that it is committed to acquiring?
• D) Should the firm issue preferred stock or common stock?

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Definitions:

Coral Bleaching

occurs when corals lose their vibrant colors due to stress factors such as increased temperatures, leading to a weakened state with reduced growth and reproductive ability.

Zooxanthellae

A type of microscopic algae living symbiotically within the cells of coral and other marine organisms, providing them with energy through photosynthesis.

Euphotic Zone

The upper layer of a body of water, such as an ocean or lake, that is illuminated by sunlight and supports photosynthesis.