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.


Next: Capital Budgeting: The Importance Of Capital Budgeting »


Sign Up For Stock Watch Weekly!

Try Our Stock Simulator!

Test your trading skills!


comments powered by Disqus
Related Tutorials
  1. Capital Budgeting

    Learn the process through which businesses determine whether projects are worth pursuing.
  2. Ethical Investing Tutorial

    Learn everything there is to know about ethical investing.
  3. Macroeconomics

    Find out everything you need to know about macroeconomics.
  4. Investing For Safety and Income Tutorial

    Read on for some investment strategies that will allow you to protect your money, ...
  5. Accounting Basics

    What is accounting? Learn the basics of this essential way of recording and ...
Recommended
Loading, please wait...
Trading Center