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:

Key Financial Data

Critical financial metrics or figures that indicate the financial health or performance of an organization.

Participative Management

A management style in which employees at all levels are encouraged to contribute ideas towards identifying and solving problems, making decisions, and setting goals.

Wellness Programs

Initiated by employers to promote healthy lifestyles among employees, often including fitness, nutrition, and mental health services.

Organizational Productivity

A measure of how efficiently an organization converts inputs into outputs, often evaluated by the ratio of outputs to inputs.