Nu Tek is comprised of four separate operating divisions.For this year,the firm has decided to allocate capital funds using a soft rationing approach.Which one of the following applies to this situation?
A) Division managers will be limited to accepting a single new project each.
B) Division managers are being given blanket approval to accept all positive net present value projects.
C) Divisions managers will vie with each other for additional capital allocations.
D) Division managers will not receive any funding for new projects but will be allowed to expand current operations.
E) Division managers will not receive capital funding for any project.
Correct Answer:
Verified
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