Which three of the following may be reasons for soft capital rationing?
A) Senior managers are aware that to undertake all positive NPV projects may place a strain on available managerial talent or other resources.
B) Senior management retains control over divisions by placing limits on the amount any particular division can spend on a set of projects.
C) Managerial unwillingness to borrow.
D) Agencies external to the firm will not supply finance for all positive NPV projects.
Correct Answer:
Verified
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