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:

Urinate

The process of excreting urine from the bladder through the urethra to the outside of the body.

Respiratory Acidosis

A medical condition characterized by decreased blood pH due to the accumulation of carbon dioxide as a result of respiratory dysfunction.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Bicarbonate

A salt-containing the anion HCO3, involved in the buffering of pH levels in the blood and other fluids of the body.