Question

Which of the following questions are addressed in the capital budgeting process?

I. What products or services will we offer or sell?
II. In what markets will we compete?
III. What new products will we introduce?
[A] I only
[B] III only
[C] I and II only
[D] I and III only
[E] I, II, and III

Answer 1

The capital budgeting process addresses the questions of what products to produce, which markets to compete in, and what new products to introduce.

Step-by-step explanation:

In the capital budgeting process, the following questions are addressed:

1. What product or products should the firm produce? This question helps determine the types of goods and services the firm should offer or sell.
2. In what markets will we compete? This question helps identify the markets in which the firm should operate.
3. What new products will we introduce? This question assists in deciding which new products the firm should introduce.