Why do capital budgets require the approval of top level company executives?

Capital budgets require the approval of top-level company executives because they involve significant financial commitments that can impact the company's long-term strategy and financial health. Executives need to ensure that proposed projects align with the company's overall goals and priorities, as well as assess the potential risks and returns. Their approval also helps allocate resources effectively and maintain accountability for large expenditures. Ultimately, executive oversight ensures that capital investments contribute positively to the company's growth and sustainability.