The Capital Market May Not Be Able to Fund All

question 16

Multiple Choice

The capital market may not be able to fund all of a company's positive NPV project because

• A) the capital market will always speculate that it is not going to get a fair return.
• B) even the capital market has a constraint for the amount of capital that it can supply a company.
• C) it can be difficult for outside investors to accurately assess the risks and returns associated with the company's projects.
• D) none of the above.

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Definitions:

Collective Action

The pursuit of a goal or the addressing of a challenge by a group of individuals or organizations working together, often seen in social movements and collaborative projects.

Local-Level Issue

pertains to a problem or matter that is specific to a particular community or geographical area.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals and a sequence of steps to achieve them.

Grassroots Organizations

Local or community-based groups that work from the bottom up to effect change on particular issues or policies.