What is Capital Rationing?
Capital Rationing is the act of allocating scarce capital resources among competing projects with a view to maximizing stakeholder value.
Because capital is not unlimited, it imposes constraint on the ability to undertake all profitable proposals, consequently some objective criteria must guide the selection of the optimal combination of the projects.
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Somtochukwu
Visionary Leader and Development Economist in Nigeria. CEO at Bufiredd Economic Consults Ltd
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