All of the Following Are Reasons Why a Firm May

question 43

Multiple Choice

All of the following are reasons why a firm may face capital rationing except:

• A)reluctant to issue additional debt
• B)the discount rate is too high
• C)lacks the managerial resources
• D)restrictive covenants that limit borrowing

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Definitions:

Cerebellum

A region of the brain that plays an important role in motor control, coordination, and sensory integration.

Mammalian Brain

The complex brain structure found in mammals, characterized by a well-developed neocortex, prefrontal cortex, and various other specialized areas.

Lips

Lips are soft, movable, and serve as the opening for food intake and in the articulation of sound and speech in the human body.

Tongue

A muscular organ in the mouth that is involved in taste, swallowing, and speech.