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In capital budgeting, the term Capital Rationing implies: ?

<p><strong>(a) That no retained earnings available,</strong></p> <p><strong>(b) That limited funds are available for investment,</strong></p> <p><strong>(c) That no external funds can be raised,</strong></p> <p><strong>(d) That no fresh investment is required in current year</strong></p> <p> </p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/25
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

That limited funds are available for investment  (B)

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer correct answer B

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

D

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

(d) That no fresh investment is required in current year

Tanveer Qureshi
by Tanveer Qureshi , Qureshi Associates , Qureshi Associates

Option-B.

B, is the best answer from the given options. There might still be sufficient fund, management only want to have bigger ROI on new investments.

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