Capital Rationing

Capital rationing is the act of placing restrictions on the amount of new investments or projects undertaken by a company. Capital rationing is the decision process used to select capital projects when there is a limited amount of funding available. capital Rationing may also be imposed when there is enough funding, but management is restricting it from certain parts of the business in other to emphasize investments in other areas. There are a number of ways to engage to capital rationing.

Capital rationing = limiting the size of the capital budget

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