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Which of the following actions would be considered capital bugdeting for a pizza restaurant? a
Which of the following actions would be considered capital bugdeting for a pizza restaurant? a. Choosing between expanding in Istanbul or moving operations to Izmir O b. Choosing between short term debt and long term debt O c. Choosing the right credit policy d. Choosing which delivery trucks to invest in O e. Both a and d
Expert Solution
Both E is correct that is both a and d are correct
Choosing between expanding in Istanbul or moving operations to Izmir and choosing which delivery trucks to invest in , both these proposals should be considered as a capital budgeting for a pizza restaurant.
Capital budgeting includes choosing the projects that add value to the company.Capital budgeting is the process by which investors determine the value of a potential investment project.
Option b is wrong because it is a financial decision and does not involve any projects to invest in and choosing between short term and long term is not related to capital budgeting.
Option c is wrong because choosing a right credit policy is not related to capital budgeting decision.
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