Asked by Jayden Williams on Jun 23, 2024

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_______________ is the focus of corporate finance as it is concerned with making the optimal choice between project alternatives.

A) Capital budgeting.
B) Capital structure.
C) Payback period.
D) Short-term budgeting.
E) Capital Allocation.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are worth more than their cost, considering the potential for profitability and risk.

Corporate Finance

The division of finance that deals with financing, capital structuring, and investment decisions in corporations.

Optimal Choice

The best possible selection among various alternatives based on certain criteria or constraints.

  • Understand the importance and process of capital budgeting in corporate finance.
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RM
Roshini MallulaJun 24, 2024
Final Answer :
A
Explanation :
Capital budgeting is the process in corporate finance that focuses on evaluating and selecting investments in long-term assets, which is essentially about making the optimal choice between project alternatives.