Capital rationing is generally a positive action for a firm because it prevents rapid growth, which can drive up the cost of capital.

Name: Capital rationing is generally a positive action for a firm because it prevents rapid growth, which can drive up the cost of capital.
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Capital rationing is used for "macromanagement" purposes, including debt constraints or economic concerns. It is generally considered a negative action since it can impede achieving maximum profitability.

Capital Rationing Is Generally a Positive Action for a Firm