Capital Rationing May Be Imposed Because of All of the Following

question 18

Multiple Choice

Capital rationing may be imposed because of all of the following except:

• A) capital market conditions are poor.
• B) management has a fear of debt.
• C) stockholder control problems prevent issuance of additional stock.
• D) the company's stock price is at an historically high level.

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Definitions:

Environmental Turbulence

The degree of change and instability in an organization's external environment, affecting its operations and strategies.

Environment Shift

Significant changes in the external surroundings that can impact an organization's strategy, operations, and competitiveness.

Ordered Systems

Systems that have been systematically organized in a structured manner.

Heterogeneous

Consisting of elements that are diverse in nature or composition, often referring to mixtures or groups with dissimilar characteristics.