What Is the Process by Which a Firm Considering Acquiring

question 113

Multiple Choice

What is the process by which a firm considering acquiring a new plant or new equipment must decide whether to make the investment,then decide how to raise the funds required for the investment?

• A)zero-based budgeting.
• B)capital budgeting.
• C)annual budgeting.
• D)management by objectives.

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Definitions:

Recency Effect

The tendency to remember and give greater importance to the most recently presented information or experiences when recalling a list or sequence.

Actor-Observer Effect

A cognitive bias in which people attribute their own actions to external factors while attributing others’ actions to their personal traits or dispositions.

Individuation

The development of an individual's sense of self and distinct identity through psychological, emotional, and spiritual growth.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.