Examveda
Examveda

In capital budgeting, the term 'capital rationing' implies

A. That no retained earnings are available

B. That limited funds are available for investment

C. That no external funds can be raised

D. That no fresh investment is required in current year

Answer: Option D


This Question Belongs to Commerce >> Business Finance

Join The Discussion

Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1