The Idea That a Company May Be Unable to Accept

question 85

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:

External Linkage Rod

A rod or bar used outside of a mechanism or system to connect two parts, allowing for movement or transmission of force.

Clutch Pedal Free Travel

The portion of the clutch pedal's movement before the clutch begins to disengage, necessary for smooth operation and gear shifting.

Clutch Facings

Clutch facings are the friction material on the faces of a clutch disc, which engage and disengage the engine from the gearbox during gear changes.

Skip-Shifting

The practice of shifting gears non-sequentially, typically skipping one or more gears, to better match engine output to driving conditions.