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John wants to buy a business whose assets have appreciated in value. If the business is operated as a C corporation, it does not matter to John whether he purchases the assets or the stock.
Hard Capital Rationing
A situation where a company is unable to secure additional funding from external sources like equity or debt markets.
NPV Projects
Projects evaluated using the Net Present Value method, which calculates the difference between the present value of cash inflows and outflows over a period.
Internal Constraints
Limitations within an organization that restrict its ability to achieve its goals, such as budget constraints, limited manpower, or technology restrictions.
Straight-Line
A method of calculating depreciation or amortization by equally spreading the cost over the useful life of an asset.
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