A Firm May Adapt Capital Rationing Because

question 70

Multiple Choice

A firm may adapt capital rationing because:

• A) it is hesitant to use external sources of financing.
• B) it wishes to maximize value.
• C) it is fearful of too much growth.
• D) it has a constraint on the amount of funds

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Definitions:

Compulsive

Relating to behavior that is driven by an irresistible urge, often against one's conscious wishes.

Amnesic

Pertaining to amnesia, a condition characterized by loss of memory, often due to brain injury, disease, or psychological trauma.

Phobic

Exhibiting or pertaining to an extreme or irrational fear or aversion to a specific object, situation, or activity.

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a way to manage anxiety.