Difference between revisions of "Capital rationing"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Capital rationing]]. Occurs when management places a constraint on the size of the firm's capital budget during a particular period. | :[[Capital rationing]]. Occurs when management places a constraint on the size of the firm's capital budget during a particular period. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Capital rationing]]. The situation in which a firm can raise only a specified, limited amount of capital regardless of how many good projects it has. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Capital rationing]]. Choosing among alternative capital investments due to limited funds. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Financial Management]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 11:20, 14 July 2020
Capital rationing is a phenomenon that occurs when management places a constraint on the size of the firm's capital budget during a particular period.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Capital rationing. Occurs when management places a constraint on the size of the firm's capital budget during a particular period.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Capital rationing. The situation in which a firm can raise only a specified, limited amount of capital regardless of how many good projects it has.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Capital rationing. Choosing among alternative capital investments due to limited funds.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
