(c) “Capital Rationing is a situation, when there is some ceiling on the availability of funds”.

Capital rationing refers to the practice of limiting the amount of funds available for investment purposes, typically due to constraints such as budgetary limitations, borrowing restrictions, or risk management considerations. In financial management, capital rationing plays a crucial role in determining how resources are allocated among various investment opportunities within a firm.

The statement, "Capital Rationing is a situation when there is some ceiling on the availability of funds," encapsulates the essence of capital rationing. This restriction on the availability of funds can arise due to various reasons, and understanding these reasons is essential for effective financial decision-making.

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