Capital rationing implies that:

Question

Quizplus · Accepted Answer

Capital rationing refers to a situation where there are not enough funding resources to meet all the funding needs of a business. As a result, the business must prioritize and allocate its limited resources to the most essential projects or investments. Therefore, option B is the correct choice as it states that funding needs exceed funding resources. Option A is incorrect as it suggests that funding resources are surplus, while option C is also incorrect as it implies that the funding needs precisely match the funding resources available.

Capital Rationing Implies That