The CFO of Edward\'s Food Distributors is continually receiving capital funding

Question

The CFO of Edward's Food Distributors is continually receiving capital funding requests from its division managers. These requests are seeking funding for positive net present value projects. The CFO continues to deny all funding requests due to the financial situation of the company. Apparently, the company is:

The CFO of Edward's Food Distributors is continually receiving capital funding requests from its division managers. These requests are seeking funding for positive net present value projects. The CFO continues to deny all funding requests due to the financial situation of the company. Apparently, the company is:

Explanation / Answer

The correct answer is

c. Facing hard rationing

As being a financing company and the request of financing is being dcenied all the time and the reason of the deny is only the financial position of the company therefore we can say that the company is facing high rationing.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.