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That would cover about 85% to 90%. business finance study scheme. Suppose you intend to start a business. The three initial questions that come to mind are: What type of investment do we need? In other words, what type of assets will be required to support the intended business?
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How will we finance our day-to-day monetary affairs such as purchasing raw materials and payments for salaries etc.? To answer these questions, let’s examine them individually for a two-fold purpose: to know what a corporation finances and secondly determine the scope of the subject The answer to this question can be found by defining the capital budgeting process.
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It involves the planning, analysis, and acquisition of capital assets such as plants and machinery or land, or buildings. These investments require a large number of resources and therefore these decisions are inherently irreversible.
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This in turn means that once the decision is implemented, they will suffer big losses if we want to overturn it
then. Investing in capital assets is therefore a very risky process and must be handled with care and skill.