Strategic decisions such as market entry or exit and capital budgeting are called structured decisions and are often executed by higher-level management is a false statement.
Why is capital budgeting used by businesses when making strategic decisions?
Companies use capital budgeting to assess the viability of potential projects. Capital budgeting aids businesses in making long-term decisions about things such as whether to invest in new software, buy new equipment, expand their facilities, or do other things that will enhance their operations.
A number of capital analysis techniques can be used to ascertain whether a capital investment is economically feasible. There are several companions, including the Payback Period, Discounted Payment Period, Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.
Therefore, Structured decisions, which are frequently carried out by higher-level management, include strategic decisions like market entry or exit and capital budgeting.
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