Economics · Capital Budgeting
In capital budgeting, the term 'capital rationing' implies that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1No new investments are required by the firm
- 2No external capital can be raised under any circumstances
- 3Limited funds are available for investment in profitable projects✓
- 4No retained earnings are available
Correct answer
Limited funds are available for investment in profitable projects
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