Which of the Following Is NOT True About the Capital

question 42

Multiple Choice

Which of the following is NOT true about the capital budgeting process?

• A) Management identifies a list of potential projects that are consistent with the business strategy and ranks them according to the value they would create for the shareholders.
• B) Rapid growth is considered a desirable achievement in capital budgeting decisions.
• C) Once the list is made, no management review can change it.
• D) All of these

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Definitions:

Parable

A brief story used to illustrate a point.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, often used in sales to illustrate a point or benefit.

Problem-solution

A method or strategy that identifies a problem and then proposes one or more solutions to solve it.

Salespeople

Individuals who are responsible for selling products or services to customers, often as part of a larger sales team.