Which of These Is Not a Reason Why Capital Budgeting

question 38

Multiple Choice

Which of these is not a reason why capital budgeting decisions must be carefully considered?

• A) They involve large sums of money.
• B) Resources are committed for long periods.
• C) Cash flows must be discounted.
• D) Because they are long-term there is greater risk that external conditions may alter.

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Definitions:

Warfare

The engagement in or the activities involved in war or conflict between nations, states, or groups.

State Societies

Complex social organizations characterized by the establishment of a centralized government, social classes, and often, a standing military.

State Collapse

A situation where the structure, authority, law, and political order of a sovereign state disintegrates, often leading to civil strife, lawlessness, and anarchy.

State Societies

Complex societies that have a structured system of government, often characterized by a central authority and social stratification.