capital rationing

capital rationing definition - business

capital rationing

A limitation on the amount of money a company is able to spend on capital projects. Capital rationing causes a company to choose among available investment projects, even when all the investments meet the firm's minimum return requirement.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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