If a Division of a fiRm Faces Soft Rationing, It

question 202

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.

---

Definitions:

Differentiating Products

The strategy of making a product appear distinct from similar products in the market through branding, design, or quality improvements.

Concentration Ratio

A measure used to assess the degree to which a small number of firms dominate within an industry, often expressed as a percentage of total market share.

Concentration Ratios

Measures of market structure and competition which indicate the cumulative market share of the top firms in an industry.

Geographic Location

Geographic Location denotes the specific physical position of an entity on Earth's surface, influencing its economic activities.