A Firm That Cannot Obtain Funds to Finance Positive NPV

question 49

True/False

A firm that cannot obtain funds to finance positive NPV projects due to internal constraints is said to be facing hard capital rationing.

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Definitions:

Prescribes

The act of recommending or advising a specific course of action or type of medication by a qualified professional.

Physician-Assisted Suicide

A form of active euthanasia in which a doctor provides the means for someone to end his or her own life, usually by prescribing lethal drugs.

Euthanasia

The practice of intentionally ending a life to relieve pain and suffering, often in the context of terminal illness.

Slippery Slope

A logical fallacy or argument that suggests a small action will lead to a chain of events resulting in a significant and often negative outcome.