soft capital rationing:
A)is costly to shareholders.
B)is used to determine mutually exclusive projects.
C)should be costless to the shareholders of the firm.
D)solves the problem of investment timing.

Question

Quizplus · Accepted Answer

Soft capital rationing implies internal restrictions set by the firm's management on the available budget for investment projects, which ideally should not impose additional costs on shareholders. It's a strategic decision to manage resources efficiently without directly impacting shareholder value through external financing costs or risks.

Soft Capital Rationing