Question:medium

"It involves committing the finance on a long-term basis." __________ concept of Financial Management is indicated from the above statement.

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Capital budgeting = deciding which long-term projects or assets to invest in for sustained growth and profitability.
Updated On: Jan 16, 2026
  • Capital budgeting decision
  • Financial leverage
  • Capital structure decision
  • Financial risk
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The Correct Option is A

Solution and Explanation


Capital budgeting involves planning and managing a company's long-term investments in assets like projects and machinery. These decisions require substantial financial commitment and affect future growth and profitability, necessitating careful assessment of potential returns and risks before resource allocation.

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