In the second part of the module, we learned the concept of "capital rationing" to explore the situations where the company is unable to take at least some of the projects that may have a positive net present value. Which of the following is not true regarding capital rationing?

A.) The fact that the company is under hard rationing does not necessarily indicate the projects the company is trying to pursue will be unprofitable.

B.) A company is deemed to be under soft rationing when it cannot raise capital for any project because of factors such as a severe financial distress.

C.) The situation in which the firm needs to choose one of the multiple projects that can generate profits to them because of the limited ability to raise capital held is known as soft rationing.

D.) None of the above (all of the above are correct).