Many companies are forced to reduce spending when they are going to raise additional capital by issuing new debt or equity. This is an example of __________.

CS Executive · Financial and Strategic Management · PYQS · June 2024
Many companies are forced to reduce spending when they are going to raise additional capital by issuing new debt or equity. This is an example of __________.
(A) Hard capital rationing
(B) Soft capital rationing
(C) Flexible capital rationing
(D) Internal Capital rationing

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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