Who imposes the limit on capital funds for soft rationing?Multiple ChoiceInvestorsBanksTop managementCorrectStock market
Question
Who imposes the limit on capital funds for soft rationing?
Multiple Choice
- Investors
- Banks
- Top management
- Stock market
Solution
The limit on capital funds for soft rationing is typically imposed by top management. This is because top management is responsible for setting financial policies and guidelines that dictate how much capital can be allocated within the organization. They evaluate the overall strategic goals of the company and make decisions that align with those goals, which includes determining the limits on capital expenditures.
In contrast, investors and banks may influence financial decisions, but they do not directly impose limits on capital funds within a company. The stock market reflects the performance of publicly traded companies but does not set internal capital funding limits.
Overall, the correct answer to this multiple-choice question is Top management.
Similar Questions
Who participates in Capital MarketAnswer choicesSelect only one optionREVISITSuppliers of fundsBorrowers of fundsGovernmentBoth A and C
NBFCs (Non-Banking Financial Companies): A. Mutual Funds B. Payment Banks C. Hedge Funds D. Venture Capital Funds
Capital Standards helps maintain the confidentiality in the banking system and promotes stability in the financial system.2 pointsTRUEFALSE
Someone who diversifies investments is more likely to
What is the monetary multiplier?multiple choicereserve ratio - 11- reserve ratio1 + reserve ratio1 / reserve ratio
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.