Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

In capital budgeting, the term Capital Rationing implies: ?

<p><strong>(a) That no retained earnings available,</strong></p> <p><strong>(b) That limited funds are available for investment,</strong></p> <p><strong>(c) That no external funds can be raised,</strong></p> <p><strong>(d) That no fresh investment is required in current year</strong></p> <p> </p>

user-image
Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/25
Deleted user
by Deleted user

Answer b is correct

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

That limited funds are available for investment  (B)

Deleted user
by Deleted user

d - is the answer

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer correct answer B

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

D

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

(d) That no fresh investment is required in current year

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

Option-B.

Deleted user
by Deleted user

B, is the best answer from the given options. There might still be sufficient fund, management only want to have bigger ROI on new investments.

More Questions Like This