Project which is started by firm for increasing sales is classified as______________?
Correct answer: A. New expansion project
- A. New expansion project
- B. Old expanded project
- C. Firm borrowing project
- D. Product line selection
Explanation
An expansion project involves increasing the firm’s existing sales or operating capacity, making “new expansion project” the best option. Product-line selection concerns choosing among products rather than directly describing sales expansion.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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