Question:
How do capital budgeting decisions impact a company’s financial future?
Answer:
Capital budgeting involves making decisions about long-term investments in assets or projects that will generate returns over a period of time. These decisions are crucial as they directly affect the future growth and profitability of a company. Poor capital budgeting choices can lead to financial losses, while well-chosen projects can significantly enhance the company's wealth.
- Long-term impact: Investments in fixed assets such as new machinery or facilities yield returns over several years, affecting long-term performance.
- Risk factor: Capital budgeting decisions carry substantial risk due to the large sums involved and the difficulty in reversing these decisions.
- Irreversibility: Once committed, capital investments are difficult and expensive to reverse, making accurate forecasting and planning essential.
- Profitability: The returns from such investments determine the financial health and competitive positioning of the company in the future.
SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='3' AND subId='20' AND ex_no!=0 AND status=1 and id!=10930 ORDER BY views desc, last_viewed_on desc limit 0,10
-
Popular questions of class 12 Business Studies
SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='3' AND subId='20' AND ex_no!=0 AND status=1 and id!=10930 ORDER BY last_viewed_on desc limit 0,10
-
Recently Viewed Questions of Class 12 Business Studies
Comments
Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.
Report a problem on Specifications:
Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.
Report a problem on Specifications:
Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.
Report a problem on Specifications: