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Capital budgeting: Investment choices are frequently referred to as capital budgeting choices. The project that the business wants to invest in is one of the choices made when creating the capital budget. There are two investing opportunities with the company. One has a net present value that is positive, whereas the other has a net present value that is negative.
Capital structure: The capital structure of a corporation is the sum of its debt and equity. In order to finance its various projects, the corporation needs $1,000,000. Choosing between stock and debt financing for a firm is a decision about its capital structure.
Working capital: Managing a company's current assets and current liabilities is what is meant by managing working capital. Giving the suppliers additional credit is an illustration of a working capital decisions.
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