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 divergences arise between equilibrium and an efficient output when spillover costs? How might government correct this divergence?
Question: Ambrose consumes two goods, peanuts (x1 ) and a composite good (x2). He has a utility functionU = 4 √x1 + x2. This means his MU1 = 2/ √x1 an
How will the system accommodate change?
Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul
Illustrate how Microeconomics looks at specific economic units?
Assume that the equilibrium price within a perfectly competitive industry is $15 and a firm into the industry charges $21 there. Which of the given will occur: w) the firm's profits will rise. x) The firm's revenue will rise. y) The firm will not sell
The market-based economic system: (1) Appears to be ‘natural’ as it has existed in all societies. (2) Has dominated the economic relationships in United States since from the year1492. (3) Guided resource allocation in middle ages. (4) Is
Both individual sellers and buyers within perfect competition: w) can affect the market price through their own individual actions. x) can affect the market price by joining along with some of their competitors. y) have to take the market price as a specified. z
with the aim of diagrams show the difference between A change in demand and A change in quantity demand
Briefly explain the term Operating Leverage?
18,76,764
1923672 Asked
3,689
Active Tutors
1438954
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!