Question

When a company is involved in capital budgeting decision, it can include all except a. Expansion...

When a company is involved in capital budgeting decision, it can include all except

a. Expansion decisions

b. Make or buy decisions

c. Lease or buy decisions

d. Employee selection decisions
Select one:
a. Expansion decisions
b. Employee selection decisions
c. Make or buy decisions
d. Lease or buy decisions
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Answer #1

Answer 1

A Capital Budgeting decision is related to Financial decisions, whether to invest in a project or not. It is basically a financial commitment and where the entity decides to invest its money for a long term period. Expansion decisions, Make or Buy decisions, Lease or Buy Decisions are all capital budgeting decisions as there is a decision to invest in a project or not. But in case of Employee selection decision, there is no financial decision related to any financial commitment and thus it is not a Capital Budgeting decision.

Option d Employee selection decisions is the correct option

Answer 2 Same Q, but option here is b Employee selection decisions

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