Capital rationing

From ACT Wiki
Revision as of 14:09, 28 April 2022 by imported>Doug Williamson (Classify page.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

A situation in which the total availability of capital to a business is limited.

Leading to the selective acceptance only of positive net present value projects. (Rather than the acceptance of all positive net present value projects, which is the theoretical value-maximising response in the situation of the unlimited availability of additional capital at current market prices.)


See also