The selection and management of short term assets and liabilities by the firm is called: O Working capital management O Depreciation cost recovery O Asset class cost analysis O Capital structure choice O Capital budgeting
The selection and management of short term assets and liabilities by the firm is called: O Working capital management O Depreciation cost recovery O Asset class cost analysis O Capital structure choice O Capital budgeting
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:The selection and management of short term assets and liabilities by the firm is called:
O Working capital management
O Depreciation cost recovery
Asset class cost analysis
O Capital structure choice
O Capital budgeting
Expert Solution
Step 1
Working capital management means managing the working capital of an organization.
Depreciation cost recovery means recovering the amount of asset by claiming the depreciation amount as an expense.
Asset class cost analysis refers to identifying the costs of different assets to determine the best course of action among different alternatives.
Capital structure choice means identifying the best proportion of debt or equity which results in maximum profits to the organisation.
Capital budgeting is the process that includes the decision making on whether the project should be accepted or rejected. Net present value is used to take such decisions.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education