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All of the following are true regarding capital rationing except:

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All of the following are true regarding capital rationing except:

 Options:

A. it places on artificial constraint on funds that many be invested
B. it may result out of a fear of growth
C. it may result out of a hesitation to use external sources of funds
D. it will help the overall profitability of the firms

 

The Correct Answer Is:

  • D. it will help the overall profitability of the firms

 

Conclusion

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