Which of the Following Is NOT Part of the Capital

question 54

Multiple Choice

Which of the following is NOT part of the capital budgeting process?

• A) develop short-term operating strategies
• B) identify and analyze potential capital investments
• C) apply capital rationing
• D) perform post-audits

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for expenses incurred in conducting business, such as wages, rent, and materials.

Implicit Costs

The opportunity costs that are not directly paid for or incurred in transactions but represent real costs to a business.

Implicit Costs

refer to the opportunity costs that occur when a company uses internal resources that could have been used for another purpose but do not directly affect cash flow.

Entrepreneurial Talent

The specific skills, creativity, and innovation that individuals bring to starting and managing new ventures or businesses.