Question : Which of the following statement is incorrect for capital budgeting decisions?

Option 1: The decisions have long term implications for the firm.

Option 2: These decisions involve large amount of funds.

Option 3: It involves less amount of risk.

Option 4: None of the above

Question

Question : Which of the following statement is incorrect for capital budgeting decisions?

Option 1: The decisions have long term implications for the firm.

Option 2: These decisions involve large amount of funds.

Option 3: It involves less amount of risk.

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: It involves less amount of risk.

Solution : Capital budgeting decisions involve huge funds. It affects the returns of the forms as a whole in the long term. So these decisions influence the overall business risk complexion of the firm.

Hence, option C is correct.

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Question : Which of the following statement is incorrect for capital budgeting decisions? Option 1: The decisions have long term implications for the firm. Option 2: These decisions involve large amount of funds. Option 3: It involves less amount of risk. Option 4: None of the above

Related Questions

Question : Which of the following statements is incorrect?

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Question : Which of the following is not the importance of capital budgeting decision?

Question : Which of the following statement is incorrect for factors affecting requirement of fixed capital?

Question : Which feature of capital market is highlighted in the given statement? Statement: It is the nature the capital market to satisfy the long term financial needs of the government industrial sector.

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Question : Which of the following statement is incorrect for capital budgeting decisions?

Option 1: The decisions have long term implications for the firm.

Option 2: These decisions involve large amount of funds.

Option 3: It involves less amount of risk.

Option 4: None of the above

Question : Which feature of capital market is highlighted in the given statement?
Statement: It is the nature the capital market to satisfy the long term financial needs of the government industrial sector.