Which Three of the Following May Be Reasons for Soft

question 28

Multiple Choice

Which three of the following may be reasons for soft capital rationing?

• A) Senior managers are aware that to undertake all positive NPV projects may place a strain on available managerial talent or other resources.
• B) Senior management retains control over divisions by placing limits on the amount any particular division can spend on a set of projects.
• C) Managerial unwillingness to borrow.
• D) Agencies external to the firm will not supply finance for all positive NPV projects.

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Definitions:

Jejunum

The middle section of the small intestine between the duodenum and ileum, where most of the nutrients from food are absorbed.

Duodenum

The first section of the small intestine immediately beyond the stomach, responsible for the initial phase of digestion.

Occult Blood

Hidden blood in stool or other bodily substances, not visible to the eye but detectable through specific medical tests.

Malabsorption

A disorder where the intestines fail to efficiently absorb nutrients from food, leading to deficiencies and other health issues.