When a Firm Faces Hard Rationing

question 78

Multiple Choice

When a firm faces hard rationing,:

• A)all positive net present value projects will be accepted.
• B)each division within a firm will be allocated an amount for capital expenditures that will be less than the total value of its positive net present value projects.
• C)there will be no available funds for capital expenditures.
• D)the firm will fund only those projects that create value for its shareholders.
• E)the firm will finance only the projects that have the highest profitability index values.

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Definitions:

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and revolutionary, best known for his theories about capitalism and communism.

Weber

Max Weber, a German sociologist, philosopher, and political economist known for his theories on the structure of society, bureaucracy, and the nature of authority.

Status Attainment Model

A sociological perspective that explains an individual's position within society based on educational achievement, occupational status, and other factors.

Blau and Duncan

Sociologists who developed the Blau-Duncan model, which outlines the structural factors influencing occupational mobility and stratification in society.