Capital Rationing Refers to

question 67

Multiple Choice

Capital rationing refers to

• A)setting a minimum acceptable rate of return for a capital outlay.
• B)selecting among profitable capital outlays when there are constraints on the funds available.
• C)determining the maximum price to pay for a capital product.
• D)None of the above

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Definitions:

Business Model

A framework outlining how a company creates, delivers, and captures value within its operational context.

Evidence

Information or facts that are used to support the validity of a statement, theory, or finding.

Infrastructure

The resources (people, technology, products, suppliers, partners, facilities, cash, etc.) that an entrepreneur must have in order to deliver the Customer Value Proposition (CVP).

Financial Viability

Defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations.