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A supervisor told a salesperson who had not made any calls to clients and therefore did not make quota, "Well, if this continues in the next 30 days, you'll probably be let go." The supervisor provides an example of
Soft Rationing
Refers to the internal limitations set by a company on the funds allocated for capital projects, despite having a strong financial position.
Hard Rationing
A situation in corporate finance where there is a strict limit on the amount of new equity a company can issue.
Operating Cash Flow
Operating cash flow refers to the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.
Variable Costs
Expenses that change in proportion to the amount of goods produced or the extent of services rendered.
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