{"id":58647,"date":"2024-04-16T01:23:10","date_gmt":"2024-04-16T01:23:10","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58647"},"modified":"2024-04-16T01:23:10","modified_gmt":"2024-04-16T01:23:10","slug":"feasibility-set-approach-to-capital-rationing-can-be-applied-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/feasibility-set-approach-to-capital-rationing-can-be-applied-in\/","title":{"rendered":"Feasibility Set Approach to Capital Rationing can be applied in:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a971a5a522e8\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Accept-reject situations                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Divisible projects                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Mutually exclusive projects                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. Accept-reject situations<\/strong><\/p>\n<p>The feasibility set approach to capital rationing is a method of capital budgeting that can be used in accept-reject situations. In an accept-reject situation, a company has a limited amount of capital to invest, and must decide which projects to invest in. The feasibility set approach involves identifying all of the projects that are feasible given the company&#8217;s capital constraints, and then selecting the projects that have the highest return on investment.<\/p>\n<p>The feasibility set approach is not appropriate for divisible projects or mutually exclusive projects. Divisible projects are projects that can be divided into smaller parts, and mutually exclusive projects are projects that cannot be both accepted. In these cases, the company must decide how much to invest in each project, or which project to accept. The feasibility set approach cannot be used to make these decisions.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>\n<p><strong>A. Accept-reject situations<\/strong><br \/>\nIn an accept-reject situation, a company has a limited amount of capital to invest, and must decide which projects to invest in. The feasibility set approach involves identifying all of the projects that are feasible given the company&#8217;s capital constraints, and then selecting the projects that have the highest return on investment.<\/p>\n<\/li>\n<li>\n<p><strong>B. Divisible projects<\/strong><br \/>\nDivisible projects are projects that can be divided into smaller parts. For example, a company might have a <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n             <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>        <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> project to build a new factory. The project could be divided into two parts: the construction of the factory, and the purchase of the equipment. The company could then decide to invest in the construction of the factory, but not in the purchase of the equipment.<\/p>\n<\/li>\n<li>\n<p><strong>C. Mutually exclusive projects<\/strong><br \/>\nMutually exclusive projects are projects that cannot be both accepted. For example, a company might have two projects to build new factories. The company could not build both factories, so it must decide which project to accept.<\/p>\n<\/li>\n<li>\n<p><strong>D. None of the above<\/strong><br \/>\nThis option is not correct. The feasibility set approach can be used in accept-reject situations.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Feasibility Set Approach to Capital Rationing can be applied in:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/feasibility-set-approach-to-capital-rationing-can-be-applied-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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