The size of assets, profitability, and competitiveness are all affected by _____.

(a) Financing decision

(b) Capital budgeting decision

(c) Dividend decision

(d) Working capital decision

Answer (b) Capital budgeting decision

Explanation: Capital budgeting is utilised by organisations to assess significant activities and ventures, like new plants, equipment, and machinery. The process includes investigating and analysing a venture’s cash inflows and outflows to decide if the normal rate of return meets a set benchmark.

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