Nu Tek is comprised of four separate operating divisions. The firm has decided t

Question

Nu Tek is comprised of four separate operating divisions. The firm has decided to allocate capital funds using soft rationing. Which one is true?
a. division managers are limited to accepting a single new project each
b. division managers are being given blanbket approval to accept all positive net present value projects
c. division managers will vie with each other for additional capital allocations
d. division managers will not reveive any funding for new projects but will be allowed to expand cu=rrent operations

Explanation / Answer

Answer is c.

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