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  • Question
  • Capital budgeting is primarily concerned with


  • Options
  • A. planning future financing needs
  • B. minimizing the cost of capital
  • C. capital formation in the economy
  • D. evaluating investment alternatives

  • Correct Answer
  • evaluating investment alternatives 

    Explanation

    Capital budgeting is the process by which a company or an industry determines whether projects such as investing in R&D, opening a new branch, replacing a machine are worth pursuing. A project is worth pursuing if it increases the value of the company. Capital budgeting also known as investment appraisal. 

     

    It is primarily concerned with evaluating investment alternatives.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

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    • 1. Other things equal an improvement in productivity will

    • Options
    • A. shift the aggregate demand curve to the left
    • B. shift the aggregate supply curve to the right
    • C. increase the equilibrium price level
    • D. shift the aggregate supply curve to the left
    • Discuss
    • 2. Inclusive unionism is practiced mostly by

    • Options
    • A. industrial unions
    • B. professional and semiprofessional employees
    • C. craft unions
    • D. small unions comprised of skilled workers, such as the bricklayers
    • Discuss
    • 3. Making Optimal decisions at the margin requires
    • Discuss
    • 4. Name the International Bank in which Temasek Holdings Pte, Singapore's government - owned investment arm, has announced to pick up 12 per cent stake.

    • Options
    • A. Deutsche Bank
    • B. ABN Amro Bank
    • C. HSBC Bank
    • D. Standard Chartered Plc
    • Discuss
    • 5. Australia - based core banking software, Financial Network Services (FNS) has been acquired by an indian comapny. Identify the company from the choices given below.

    • Options
    • A. Wipro Technologies
    • B. Mindtree
    • C. Infosys
    • D. TCS
    • Discuss
    • 6. A business organized as a corporation

    • Options
    • A. Is owned by its stockholders
    • B. Has tax advantages over a proprietorship or partnership
    • C. Is not a separate legal entity in most states
    • D. Requires that stockholders be personally liable for the debts of the business
    • Discuss
    • 7. Which type of unit is charged with regulating business?
    • Discuss
    • 8. For a good that is a luxury demand

    • Options
    • A. has unit elasticity
    • B. tends to be inelastic
    • C. tends to be elastic
    • D. cannot be represented
    • Discuss
    • 9. Every SOP must have the signature of the ____ within your chain of command before it is a legal document.
    • Discuss
    • 10. The ability of a corporation to obtain capital is

    • Options
    • A. about the same as a partnership
    • B. enhanced because of limited liability and ease of share transferability
    • C. restricted because of the limited life of the corporation
    • D. less than a partnership
    • Discuss


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