Which of the following best describes the term capital rationing?

A. a process of ranking and choosing among alternative capital investments based on the availability of funds
B. a method which shows the effect of an investment on a company's accrual-based income
C. a method of determining the period within which the cash invested is recouped
D. a process of controlling operating costs when adequate funds are not available


Answer: A. a process of ranking and choosing among alternative capital investments based on the availability of funds

Business

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