- This topic has 1 reply, 2 voices, and was last updated 13 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › ACCA Forums › ACCA FM Financial Management Forums › capital rationing
explaining why a company may deliberately choose to restrict its capital expenditure?
i think thats called soft rationing, where management decides to restrict expenditures due to the following reasons:
wish to concentrate on few projects (to limit risk)
unwilling to take external funds (interest, debt, etc)
willing to concentrate on strongly profitable projects
might affect going concern.
