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
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.
Question : Which of the following statements is incorrect?
Question : These decisions affect the growth,profitability and risk of business in the long run.
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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