Capital Budgeting
AAA
  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

Capital Budgeting: Introduction

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

  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
RELATED TERMS
  1. Financial Singlularity

    A financial singularity is the point at which investment decisions ...
  2. Revenue-based Financing

    Revenue-based financing, also known as royalty based financing, ...
  3. Cost Test

    A standard test applied to a process to determine if the net ...
  4. Precedent Transaction Analysis

    A valuation method in which the prices paid for similar companies ...
  5. Bjerksund-Stensland Model

    A closed-form option pricing model used to calculate the price ...
  6. Asset Condition Assessment

    A report outlining how an organization can manage capital assets ...
  1. What is the difference between called-up share capital and paid-up share capital?

    Find out about the difference between called-up and paid-up share capital, including an explanation of the four categories ...
  2. What is the utility function and how is it calculated?

    Learn what the utility function is in microeconomic theory and how it is calculated based on a functional form that represents ...
  3. How does additional paid in capital affect retained earnings?

    Find out how additional paid-in capital can impact a company's retained earnings, including an explanation of both financial ...
  4. What types of capital are not considered share capital?

    Find out what types of capital are not considered share capital, including an explanation of the different types of share ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Ethical Investing Tutorial

  2. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  3. Economics

    Macroeconomics

  4. Professionals

    Complete Guide To Corporate Finance

  5. Forex Education

    Accounting Basics

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!