Describe the differences between the way small and large companies conduct capital budgeting.

Small companies typically make use of less rigorous approaches when conducting capital budgeting due to lack of resources/experience in such areas. Such firms will often rely more on gut feelings and personal experience rather than any hard data when making their decisions; this could result in over or under-investment depending on the situation.

On the other hand, larger entities tend to employ more sophisticated models that involve gathering & analyzing various types of financial information before committing funds. Moreover such organizations usually have teams dedicated solely for these tasks thus allowing them better assess current/future scenarios & identify potential risks ahead of time so as maximize returns going forward.

Ultimately though having an effective strategy should enable businesses better manage their finances regardless of size thus leading to improved efficiency & performance over extended periods of time.