Capital Rationing Refers to the Limiting of Capital Resources to Underperforming

question 24

True/False

Capital rationing refers to the limiting of capital resources to underperforming divisions.

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Definitions:

Co-Determination

A practice where workers have a role in management of a company, often through participation in management boards or committees.

White Knight

A person or company making a favorable investment in or purchase of a company as a strategic defense against a hostile takeover.

Tender Offer

A public, open offer or invitation by a prospective acquirer to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a certain time.

Hostile Takeover

An acquisition attempt by one company of another that is resisted by the target company's management and board of directors.