Which of the Following Is NOT a Common Reason for Capital

question 74

Multiple Choice

Which of the following is NOT a common reason for capital rationing?

• A)The firm puts a limit on the amount of its investments.
• B)Creditors impose capital rationing on firms due to poor performance.
• C)Senior executives may be reluctant to issue additional debt,thus limiting capital expenditures.
• D)All of the above are reasons in impose capital rationing.

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Definitions:

Drive-Reduction Theory

A theory in psychology that proposes that psychological needs create an aroused state that drives an organism to reduce that need by engaging in some behavior.

Biological Factors

Refer to the genetic, neurological, and physiological conditions that affect human behavior and mental processes.

Ventromedial Hypothalamus

A region of the brain that regulates hunger and satiety signals, playing a key role in body weight and eating behavior.

Lateral Hypothalamus

A region of the hypothalamus in the brain known to control hunger and thirst mechanisms.