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Homework answers / question archive / 1)Which one of the following terms is defined as the management of a firm's long-term investments? A working capital management B

1)Which one of the following terms is defined as the management of a firm's long-term investments? A working capital management B

Accounting

1)Which one of the following terms is defined as the management of a firm's long-term investments? A working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure

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Answer : D. capital budgeting

Explanation :

Capital budgeting is process of determining in which long-term capital investments company will invest in order to make profit in the long-term. It requires detailed financial analysis, that whether it gives positive present value or not.