____ is the term used when the initial cost of all acceptable capital budgeting projects is greater than the total funds the firm has available.
A) Profit maximization
B) Funds constraint
C) Mutually exclusive
D) Contingent

Question

Quizplus · Accepted Answer

When the initial cost of all acceptable capital budgeting projects is greater than the total funds the firm has available, it is called a funds constraint. This means that the company will have to prioritize and select only the most important projects based on their potential returns and available funds.

____ Is the Term Used When the Initial Cost of All