PC Enterprises wants to commence a new project but is unable to obtain the financing under any circumstances. This firm is facing:
A) financial deferral.
B) financial allocation.
C) capital allocation.
D) marginal rationing.
E) hard rationing.

Question

Quizplus · Accepted Answer

The term "hard rationing" refers to a situation where a firm is unable to obtain financing for a project under any circumstances. This is the most severe form of capital rationing, and it means that the firm must forgo the project entirely or find alternative sources of financing.

PC Enterprises Wants to Commence a New Project but Is