Which of the Following Statements Is True of the Capital

question 20

Multiple Choice

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

• A) Capital budgeting does not provide 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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