The Idea That a Company May Be Unable to Accept

question 81

Multiple Choice

The idea that a company may be unable to accept all projects that are expected to have positive NPVs due to the lack of funds is known as:

• A) capital rationing
• B) capital budgeting
• C) capital constraints
• D) cannibalization
• E) capital structure

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Definitions:

Electronic Funds Transfer

Electronic Funds Transfer (EFT) is the digital transfer of money from one bank account to another without any paper money changing hands.

Collect Bills

The action of requesting and receiving payment for goods or services rendered, often by companies or creditors.

Lockbox

An address, usually a commercial bank, at which a company receives payments in order to speed collections from customers.