A Firm May Adopt Capital Rationing Because

question 49

Multiple Choice

A firm may adopt capital rationing because

• A) it is hesitant to use external sources of financing.
• B) it wishes to maximize profits.
• C) it is fearful of too much growth.
• D) all of the options are true.

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Definitions:

British Authority

The governing power or control exercised by British governmental and colonial administrations, historically observed in territories under British rule.

Sugar Act

A British law enacted in 1764 aiming to raise revenue from the American colonies by imposing a tax on sugar and other imports, contributing to colonial dissatisfaction and the American Revolution.

Legislation

Laws or legal enactments made or enacted by a governing body or legislature.