Drawbacks of capital budgeting
Write down the drawbacks of capital budgeting?
Expert
Capital budgeting drawbacks are illustrated below :- i) It has long term executions which cannot be employed in short term and it is employed as operations of the business. An incorrect decision in the early stages can influence the long-term stability of the company. The operating cost gets raised when the investment of fixed assets is more than necessary.
ii) Inadequate investment makes it hard for the company to raise it budget and the capital. iii) Capital budgeting engages huge number of funds so the decision has to be taken cautiously. iv) Decisions in capital budgeting are not adjustable as it is difficult to locate the market for capital goods.
What are the 2 definitions of economics growth?
Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?
Illustrate the Risks involved with bonds?
“The legal form an enterprise assumes is dictated primarily by the financial requirements of its particular line of production.” Do you agree?
Which of the given describes a situation in which each good or service is produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the marginal cost of producing this? w) productive efficiency.
How do you account for the dominant role of corporations in the U.S. economy?
What are the limitations of Circular Flow Model?
What is the most important source of revenue and the major type of expenditure at the Federal level?
Economic efficiency for society needs which the: (i) opportunity costs of all goods be at their lowest possible values. (ii) maximum probable benefits are acquired for given costs. (iii) greatest possible net benefits are squeezed through available re
What are the 4 phases of the business cycle?
18,76,764
1923981 Asked
3,689
Active Tutors
1445745
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!