Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A) Capital budgeting has long-term effects on firm leading the firm to lose some decision-making flexibility.
• B) Because asset expansion is fundamentally related to future sales,the decision to buy an asset involves an implicit sales forecast.
• C) Timing is important in capital budgeting.
• D) Capital budgeting is important because the acquisition of fixed assets typically involves substantial expenditures.
• E) All of the above are correct.

---

Definitions:

Benign Cyst

A noncancerous, closed pocket of tissue that can be filled with fluid, pus, or other material, often found on or inside the body.

On-time Rates

The percentage of events or activities that occur on schedule, often used as an indicator of efficiency or reliability in service industries.

Scheduled Deliveries

The pre-arranged or planned arrivals of goods or packages at a specific time and place.

Conditional Probability

A measure of the likelihood of an event occurring given that another event has already occurred.