Which of the Following Is a Principle of Capital Budgeting

question 46

Multiple Choice

Which of the following is a principle of capital budgeting which states that the calculations of cash flows should remain independent of financing?

• A) Generally accepted accounting principle
• B) Financing principle
• C) Separation principle
• D) WACC principle

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in the group results in an irrational or dysfunctional decision-making outcome.

Poor Decisions

Choices or judgments that result in undesirable outcomes, often due to a lack of information, consideration, or impulse control.

Consensus

This term means general agreement among a group or the shared conclusions of a collective.

Stereotype

A generalized (sometimes accurate but often overgeneralized) belief about a group of people.