Answer:
Bypassing projects that have positive NPVs
Explanation:
An organization cannot undertake every investment that comes its way due to financial constraints. Capital rationing is the process by which the organization accepts those investments that give maximum benefits at minimum cost and rejects the ones that are not cost effective.
One of the disadvantages of capital rationing is that it bypasses investments with positive NPV (net present value) and accepts investments with highest NPV.
