Questions - What is the capital budgeting? Explain the importance of capital budgeting.

Answer – In this competitive arena pro-active organization makes attempts to convert challenges into opportunities. Indian economy is growing at 9%. It has for reaching implications. New lines of business such as retailing, investment advisory services and private banking are emerging. All these involve investment decisions. These investment decisions that corporate take to reap the benefits arising out of the emerging business opportunities are known as capital budgeting decisions.

Capital budgeting decisions involve evaluation of specific investment proposals. Here the word capital refers to the operating assets used in production of goods are rendering of services.

Budgeting involves formulating a plan of the expected cash flows during the future period. When we combine capital with budget we get capital budget.

Capital budget is a blue print of planned investments in operating assets. Therefore, capital budgeting is the process of evaluating the profitability of the projects under consideration and deciding on the proposal to be included in the capital budget for implementation.

Capital budgeting decisions involve investment of current funds in anticipation of cash flows occurring over a series of years in future. All these decisions are strategic because they change the profile of the organizations. Successfully originations have created wealth for their shareholders thought capital budgeting decisions.

Importance of capital budgeting:

Capital budgeting decisions are the most important decisions in corporate financial management. These decisions make or a business organization. These decisions commit a firm to invest its current funds in the operating assets with the hope of employing those most efficiently to generate a series of cash flows in future.

These decisions could be grouped into:

1. Replacement decisions: These decisions may be decision to replace the equipments for maintained of current level of business or decision aiming of cost reductions.

2. Decisions on expenditure for increasing the present operating level or expansion through improved network of distribution.

3. Decisions for products of new goods or rendering of new services.

4. Decisions on penetrating into new geographical area.

5. Decisions to comply with the regulatory structure effecting the operations of the company. Investment in assets to comply with the conditions imposed by environmental protection act comes under this category.

6. Decisions an investment to build township for providing residential accommodation to employees working in a manufacturing plant.

These questions are for 1^st semester communication book. In the examination of SMU can be asked most probably. MB 0023 is the subject code of the book. If you nee the more question about SMU then visit the MBA Education blog. If you need the assignment then you can visit the MBA assignment blog and similarly you can visit financial accounting blog for financial subject in second semester of SMU MBA.

 

1. Pick out the adjective forms of the words: ‘WOOD; HONOUR’.

 

1. WOOD; HONOURING
2. WOODS; HONOURS
3. WOODY; HONOURARY
4. WOODS; HONOURABLY

 

2. Fill in the suitable prepositions:

 

My brother has invited to me to spend the summer --- him --- his village.

 

1. By: in
2. With: at
3. Near: on
4. Beside: with
   
   

1. a, b
2. c, d
3. a, c
4. b, d

 

3. Pick out ONE imperative and ONE: exclamatory sentence from the following:

 

1. What a difficult world this is!
2. Have a little pity, for mercy’s sake!
3. Manisha played with her doll
4. What is the name of your son?

 

1. a, b
2. c, d
3. a, c
4. b, d

 

4. Pick out ONE example for Masculine gender and ONE example for feminine gender.

 

1. Lion, Tiger
2. Horse, Vixen
3. Creature, baby
4. Parent, Neighbour

 

5. Pick out ONE example for common gender and ONE example for Neuter gender.

 

1. dog, mare
2. pen, table
3. teacher, computer
4. friend, child

 

6. Choose ‘TWO TRUE statements: To read efficiently one has to have:

 

1. The knowledge of the speaking system of the language
2. The knowledge of the language (grammar, vocabulary, etc.)
3. The ability to interpret
4. A reason for writing and the appropriate method of reading
5. The knowledge of the country

 

1. a, c
2. c, e
3. d, e
4. b, c

 

7. Reading for pure pleasure is called – finding out the meaning of a word in a dictionary is –

 

1. Skimming, Intensive reading
2. Scanning, Extensive reading
3. Extensive reading, Scanning
4. Intensive reading, Skimming

 

8. Pick out the components of the communication processes mentioned in the correct order:

 

1. Sender, encoder, decoder, receiver, channels and feedback
2. Feedback, encoder, sender, decoder, receiver and channels
3. Channels, decoder, encoder, sender, receiver and feedback
4. Sender, encoder, channels, decoder, receiver and feedback

 

9. Pick out one advantage and one disadvantage of Electronic Media in communication:

 

1. Facsimile machines and e-mail has facilitated instant feedback for massages
2. Electronic media does not provide opportunities like shopping or paying bills from your house
3. Electronic media is not effective in long distances
4. Telecommunication may be a serious disadvantage for a company
5. Using Electronic media we miss the face to face interaction

 

1. a, c
2. b, d
3. c, e
4. a, c

 

10. We find a title and a preface in the – matter and bibliography and index in the ---matter of a formal report

 

1. Body, Front
2. Back, Body
3. Middle, Front
4. Front, Back

 

11. Pick out one American and one British word:

 

1. Cheque, license
2. Gray, Theater
3. Counseling, Organize
4. Favor, Organize

Today, every students want to hold MBA degree because they think it is the path of success. MBA from distance or regular both have huge student to get the degree. There are many distance education courses facility also for MBA by many university.

I am recommending SMU (Sikkim Manipal University) because I am doing my MBA from this university. In the today's context MBA objectives are more clear – students want degree and education of MBA (Master in Business Administrator) because they want to success globally. It is a course of global environment.

By doing a MBA course you can get opportunity in growing company as a manger. It is the objectives of every MBA students.