Q478
Situation in which firm limits expenditures on capital is classified as
A.
optimal rationing
B.
capital rationing
AnswerC.
marginal rationing
D.
transaction rationing
Answer: Option B
Solution
Answer: Option B
Solution:
Situation in which firm limits expenditures on capital is classified as capital rationing. Capital rationing is the process of putting restrictions on the projects that can be undertaken by the company or the capital that can be invested by the company.