Q » What is capital rationing?
06 Dec, 2025
A » Capital rationing is a financial strategy where a company limits its investment in new projects due to budget constraints or to maintain financial discipline. It involves selecting projects that offer the highest return on investment within the available capital, ensuring optimal allocation of resources. This approach helps in maximizing profitability while minimizing risk, especially when external financing is expensive or unavailable.
06 Dec, 2025
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