Which one of the following is a capital budgeting decision? A. Determining how much debt should be borrowed from a particular lender. B. Determining how much inventory to keep on hand. C. Deciding when to repay a long-term debt. D. Deciding whether or not to open a new store. E. Determining how much money should be kept in the checking account.

Question

Business

Bernard Harper

10 March, 18:18

Which one of the following is a capital budgeting decision? A. Determining how much debt should be borrowed from a particular lender. B. Determining how much inventory to keep on hand. C. Deciding when to repay a long-term debt. D. Deciding whether or not to open a new store. E. Determining how much money should be kept in the checking account.

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Beatrice Sherman · Answer 1

Answer: Deciding whether or not to open a new store is a capital budgeting decision.

Capital budgeting is the process in which a enterprise is set about to measure possible leading investments.

∴ Deciding whether or not to open a new store is a capital budgeting decision.