1. Capital Budgeting: Introduction
  2. Capital Budgeting: The Importance Of Capital Budgeting
  3. Capital Budgeting: Evaluating The Desirability Of An Investment
  4. Capital Budgeting: Capital Budgeting Decision Tools
  5. Capital Budgeting: The Capital Budgeting Process At Work
  6. Capital Budgeting: Wrapping It All Up
All of us, at one time or another, have had to deal with either preparing or following a budget. In fact, many households manage their financial affairs through a budget. Businesses do the same thing through what is known as capital budgeting.

The process of capital budgeting is vital to any responsible, well managed business. If that business is public and owned by public shareholders, the budgeting process becomes more crucial, since shareholders can hold management accountable for accepting unprofitable projects that can have the effect of destroying shareholder value.

Capital Budgeting: The Importance Of Capital Budgeting

Related Articles
  1. Personal Finance

    Here's How to Create a Successful Budget

    Break your expenses into needs, wants, and savings goals for a budget plan you can stick to.
  2. Small Business

    Budgeting Your Small Business

    Budgeting helps small businesses determine if they have enough money to fund operations, expand and generate income.
  3. Personal Finance

    This Is the Year to Start Budgeting

    Whether your issue is credit card debt, student loans (or the fact that Social Security isn't rising next year), it's time to learn how to build a budget.
  4. Personal Finance

    5 Budgeting Steps for Young Families

    Here are five steps young families can take to create and stick to a budget.
  5. Personal Finance

    Budgeting Basics

    If you're looking for a way to better manage your money and improve your financial situation, then this tutorial is for you.
  6. Small Business

    How Budget Deficits Work

    How do governmental and business budget deficits function?
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center