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

---

Definitions:

Negotiation

The process of discussion aimed at reaching an agreement between two or more parties with differing needs and objectives.

Decreased Communication

A reduction in the exchange of information among parties, which can lead to misunderstandings, unresolved conflicts, or decreased cooperation.

Destructive Images

Refers to negative perceptions or beliefs that hinder communication and understanding between parties in a conflict.

Conflict

A situation or process arising from the perceived opposition of needs, values, or interests, requiring resolution.