Which of the Following Best Describes the Term Capital Rationing

question 152

Multiple Choice

Which of the following best describes the term capital rationing?

• A) a method of determining the period within which the cash invested is recouped
• B) a process of ranking and choosing among alternative capital investments based on the availability of funds
• C) a method which shows the effect of an investment on a company's accrual-based income
• D) a process of controlling operating costs when adequate funds are not available

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