Practice What is Capital Budgeting? - 25.1.1 | 25. Capital Budgeting Techniques | Management 1 (Organizational Behaviour/Finance & Accounting)
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Knowledge

25.1.1 - What is Capital Budgeting?

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is capital budgeting?

💡 Hint: Think about what kind of decisions it involves.

Question 2

Easy

Why is risk management important in capital budgeting?

💡 Hint: Consider the consequences of a wrong investment decision.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the main purpose of capital budgeting?

  • Short-term gains
  • Evaluate major investments
  • Reduce costs

💡 Hint: Think about the kind of decisions it helps organizations make.

Question 2

True or False: Capital budgeting is primarily concerned with short-term cash flow.

  • True
  • False

💡 Hint: Consider the timeframe of the investments.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You are a financial analyst for a tech startup considering two projects: upgrading servers or developing a new software application. List the factors you consider for capital budgeting.

💡 Hint: What long-term impacts might each choice have?

Question 2

A company has to choose between two equally profitable ventures. One is a high-risk software project with rapid growth potential, and the other is a stable hardware upgrade with guaranteed clients. How do you evaluate which project to choose?

💡 Hint: Think about what the company's priorities are: growth or stability?

Challenge and get performance evaluation