Word Count : 530

---

Capital rationing refers to the process of allocating limited financial resources among competing investment projects when a firm does not have sufficient funds to undertake all desirable projects. In financial management, it is a situation where a company faces a constraint on the amount of capital available for investment and must prioritize projects based on their potential returns, risks, and strategic importance. The concept arises because resources are scarce, and firms aim to maximize shareholder wealth by investing in projects that yield the highest return per unit of capital invested. Capital rationing can be either hard, where the company has an absolute limit on funds due to external factors like borrowing constraints, or soft, where internal management imposes limits to maintain financial stability or avoid overexpansion. The process of capital rationing involves __________ ____ ___ ______ _____ _____ ___.
____ ______ _________ _________ _______ ________ _____ ____ ______ ______ ___ ________.
_________ ____ _______ _________ ________ __________ _______ _______ _________ ____ __________.
________ _____ ______ ________ _____.
______ ________ ______ ______ ______ _______ ____ _____ ______ ___ _______.
__________ __________ ____ ___ ____ ______ ___ _________ _______.
_______ ____ _____ __________ _____ _______ __________.
___ ______ _________ ___ ______ _________ _____.
__________ ____ __________ ________ ________ _______ ______ ______ _______ ________ _________ _______.
____ ________ ___ ______ ________ _____ ____.
________ _______ ______ ______ _________ ____.
_____ ___ ___ _______ _____ _______ ___ ____ ___ ______ _________ __________.
____ _______ ______ __________ _______ _______ __________ ________ _________.
___ __________ _____ __________ ___.
_______ __________ ________ ________ _____ ____ _____ _____ _____ __________ _______.
__________ __________ ___ ________ ____ _________ ____.
_______ _______ ________ _________ _________ ______ ______ _________.
___ ______ ____ ____ _________ ______ ____ ________ ____ ______.
______ ______ ___ ____ _________ ___ _______.
_________ _______ _________ ___ ____ _____ _______ __________ ___ ___ __________ _____.
_____ _____ __________ ________ ______ _______ ________ _____ _____ ______ ________.
________ __________ _______ _______ ____ _____ _____.
___ ________ ______ __________ _______ ____ _______ _________ ______ ___ ________.
_____ _____ _____ _______ ____ ___ ______ ___ ___ _____.
____ ____ _______ __________ __________ _________ ______ __________ __________ __________.
_______ ___ ____ ___ __________.
____ _______ ___ _________ ____ __________ _______ ___.
____ ____ _____ _____ ___ _______ ____ __________ ___ ____ ______.
_______ _____ _________ ___ _________.
_________ ____ ____ ______ ___ ________ _______ ________ ____ ____ ______.
___ _______ ______ ________ ____ _________ ___ ___ _________ _________.
______ ______ ___ ______ _______ _____ _________.
__________ ________ _______ ____ __________ __________ _______ __________ ______ ____ _____ ______.
___ _______ _________ ________ __________ ____ _______.
___ ___ ________ _______ _______ ________ _________ _____ _____.
_____ _________ __________ ___ ___.
_________ _____ ______ ______ __________ _______ ________ ___ ______.
___ _________ ______ ____ ____ _______ __________ ______.
_________ _____ ______ __________ ____ _______ ________ _______ ______.
_________ ______ ___ ___ _____ ________ ___ ____ _____ _______ _____ _________.
_______ __________ ______ ________ _____ ______ ________.
_______ _________ _________ ______ _____ __________.
__________ ____ __________ _________ _______ _______.
____ ________ ____ ___ ________ ________ ____.
___ ___ ___ ____ __________ ______ ______ _________ ___.
_______ ____ ____ _______ _______ ____.
__________ _______ _________ _________ ______.
Get Full Answer on WhatsApp