$(7)$ Memorial Inc.$\text{'}$s CFO receives frequent capital funding requests from the firm$$s 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:

Multiple Choice

operating with zero leverage.

facing hard rationing.

operating at maximum capacity.

operating at the financial break$-$even point.

operating at the accounting break$-$even point.