Capital rationing
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.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
