Capital Rationing Is the Situation in Which a Firm Can

question 2

True/False

Capital rationing is the situation in which a firm can raise only a specified,limited amount of capital regardless of how many good projects it has.

---

Definitions:

Profit Centers

Divisions or branches of a company that are directly responsible for generating its profits, tracked separately to evaluate performance.

Discretion

The ability or authority to make decisions and choices based on one's own judgment.

Corporate Executives

Senior management or high-level officers in a corporation who are responsible for making company-wide decisions.

Bonuses

Additional financial compensation awarded to employees or individuals beyond their normal earnings.