Question

When using capital rationing, unfunded proposals a.are discarded for purposes of decision making for all future plans. b.are always considered to be unacceptable. c.may be reconsidered if funds later become available. d.None of these choices are correct.

Answer 1

Answer:

Correct Answer:

a. are discarded for purposes of decision making for all future plans.

Explanation:

In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.