If a Division of a Firm Faces Soft Rationing, It

question 138

True/False

If a division of a firm faces soft rationing, it is unlikely more capital can be obtained from the firm if the division finds a worthwhile positive NPV project.

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Definitions:

Downsizing

The process of reducing the number of employees in an organization, often to cut costs or improve efficiency.

Effectiveness

The degree to which something is successful in producing a desired result, measured by the achievement of goals.

Adaptability

describes the capacity to adjust to new conditions, challenges, or environments, often necessary for personal growth or organizational survival.

Managed

The act of being directed or controlled by strategies and leadership towards achieving specific objectives.