Which One of the Following Would Be Considered a Capital

question 59

Multiple Choice

Which one of the following would be considered a capital budgeting decision?

• A) Planning to issue common stock rather than issuing preferred stock
• B) Deciding to expand into a new line of products, at a cost of $5 million
• C) Repurchasing shares of common stock
• D) Issuing debt in the form of long-term bonds

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Definitions:

Sales Goals

Specific objectives set by a business related to the amount of product or services sold within a particular timeframe.

Proprietorship

A type of business entity owned and run by one individual, with no distinction between the business and the owner.

Personal Loans

Unsecured loans given to individuals based on their credit score and other factors, used for personal expenses.

Debts

Money that is owed or due to another individual or entity.