Capital Rationing

question 93

Multiple Choice

Capital rationing:

• A) is a way of preserving the assets of the firm over the long term.
• B) is a less than optimal way to arrive at capital budgeting decisions.
• C) assures shareholder wealth maximization.
• D) assures maximum potential profitability.

---

Definitions:

Strategic

Pertaining to the identification of long-term or overall aims and interests and the means of achieving them through careful planning and allocation of resources.

Financial

Pertaining to the management, creation, and study of money, banking, credit, investments, assets, and liabilities.

Strategic

Pertaining to the identification of long-term or overall aims and interests and the means of achieving them, often within a business or organizational context.

Horizontal Merger

The combination of two or more firms operating in the same industry or production stage to expand market share or reduce competition.