A proposal is not a capital budgeting proposal if it____________.

Is related to fixed assets

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Brings long-term benefits

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Brings short-term benefits Only

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Has very large investment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Brings short-term benefits Only
A proposal is not a capital budgeting proposal if it brings short-term benefits only. Capital budgeting decisions involve huge funds and are long term decisions, it benefits the firm in long term. As they involve huge costs one wrong decision would have a big effect on the business.

Suggest Corrections