The Procedure of Allocating a Fixed Amount of Funds for Capital

question 41

Multiple Choice

The procedure of allocating a fixed amount of funds for capital spending to each business unit is called:

• A) marginal spending.
• B) capital preservation.
• C) soft rationing.
• D) hard rationing.
• E) marginal rationing.

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Definitions:

Interrupts Frequently

The act of regularly breaking the continuity of speech or a process before it is finished.

Fosters Dependency

Encouraging a reliance or strong need for support, assistance, or control by another individual or group, potentially hindering independence.

Superiority Position

A stance or situation in which an individual or group considers themselves better or more important than others, often leading to social hierarchies.

Creative Thinking

A thought process involving innovation, uniqueness, and the ability to generate new ideas or solutions.