Soft Capital Rationing May Be Beneficial to a Firm If

question 54

Multiple Choice

Soft capital rationing may be beneficial to a firm if it:

• A) reduces a firm's taxes.
• B) weeds out proposals with weaker or biased NPVs.
• C) allows managers to select their favorite projects.
• D)lowers the cost of capital.

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Definitions:

Transaction Types

The various categories of financial activities, such as sales, purchases, payments, and receipts, recorded in accounting.

Banking And Credit Card

Financial services and products that involve managing checking and savings accounts, as well as issuing and servicing credit card accounts.

Vendors And Expenses

Refers to the companies or individuals from whom goods or services are purchased (vendors) and the costs incurred in the operation of a business (expenses).

Employees And Payroll

Employees and payroll refer to the process of managing the payment of wages or salaries to individuals working for an organization, including the calculation of deductions and taxes.