ruta_becca
Feb 22, 2011, 10:59 AM
9. Which one of the following is not a reason why a company should carefully plan its capital investment decisions?
a. Capital investments usually require a large initial outlay of capital.
b. Capital investments are usually tied to management bonus plans.
c. Capital investment decisions affect earnings over a long period.
d. Capital investments are less liquid, so poor investment decisions are difficult to reverse.
My answer is d. is this correct?
a. Capital investments usually require a large initial outlay of capital.
b. Capital investments are usually tied to management bonus plans.
c. Capital investment decisions affect earnings over a long period.
d. Capital investments are less liquid, so poor investment decisions are difficult to reverse.
My answer is d. is this correct?