Nu Tek Is Comprised of Four Separate Operating Divisions

question 3

Multiple Choice

Nu Tek is comprised of four separate operating divisions.For this year, the firm has decided to allocate capital funds using a soft rationing approach.Which one of the following applies to this situation?

• A)Division managers will be limited to accepting a single new project each.
• B)Division managers are being given blanket approval to accept all positive net present value projects.
• C)Division managers should expect to be treated equally, at least initially, in the capital distribution process.
• D)Division managers will not receive any funding for new projects but will be allowed to expand current operations.
• E)Division managers will not receive capital funding for any project.

---

Definitions:

Specific Insurance

Insurance policies designed to cover specific risks, objects, or scenarios, offering tailored protection against particular perils.

Collision Insurance

A type of automobile insurance that protects the insured against any loss arising from damage to the insured’s automobile caused by accidental collision with another object or with any part of the roadbed.

Annuity

A guaranteed retirement income.

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some weather damage.