Question

The situation in which the firm limits the expenditures on capital is classified as

a.

optimal rationing

b.

capital rationing

c.

marginal rationing

d.

transaction rationing

Answer: (b).capital rationing

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The situation in which the firm limits the expenditures on capital is classified as

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is

Q. A project which have one series of cash inflows and results in one or more cash outflows is classified as

Q. The present value of future cash flows is divided by an initial cost of the project to calculate

Q. If the net present value is positive then the profitability index will be

Q. The cash flows occurring with more than one change in sign of cash flow are classified as

Q. The first step in calculation of net present value is to find out

Q. The situation in which one project is accepted while rejecting an other project in comparison is classified as

Q. The sum of discounted cash flows is best defined as

Q. The life that maximizes net present value of an asset is classified as

Q. If two independent projects having hurdle rate then both projects should

Q. The cash outflows are the costs of project and are represented by

Q. In capital budgeting, two projects having cost of capital as 12% is classified as

Q. The cash flow which starts negative then positive then again positive cash flow is classified as

Q. In estimating value of cash flows, the compounded future value is classified as its

Q. In capital budgeting, a technique which is based upon discounted cash flow is classified as

Q. An increase in marginal cost of capital and the capital rationing are two arising complications of

Q. An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be

Q. In large expansion programs, the increased riskiness and the floatation cost associated with project can cause

Q. The cash inflows are the revenues of project and are represented by

Q. The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!