McqMate
| Q. |
Capital rationing is applied in a situation where |
| A. | It is difficult to bring in required amount of capital |
| B. | Financial institutions are doubtful or not sure of the validity of the project |
| C. | A large number of investment proposals compete for limited funds |
| D. | The dividend is converted into capital for completion of a new project |
| Answer» C. A large number of investment proposals compete for limited funds | |
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