• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Soft and hard capital rationing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Soft and hard capital rationing

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 4, 2018 at 5:22 pm #445012
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir there is a past exam question for 5 marks that discuss the reasons why investment finance may be limited even when a company has attractive investment opportunities available to it?

    Sir will writing the below answer will be sufficient or will we have to explain further?

    Theoretically a company should invest in all projects with a positive NPV in order to maximize shareholder wealth. If investment finance is limited for reasons outside a company it is called hard capital rationing.If investment finance is limited for reasons within a company it is called soft capital rationing.

    April 4, 2018 at 7:44 pm #445028
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    No – that is not enough for 5 marks. You need to explain hard and soft rationing a bit more.

    Read what the examiners answer to this question says and check how the marks are allocated in the marking scheme.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Soft and hard capital rationing’ is closed to new replies.

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • opentuition_team on ACCA TX-UK FA2025 Chapter 2 The Income Tax Computation
  • sayedaamal on ACCA TX-UK FA2025 Chapter 2 The Income Tax Computation
  • opentuition_team on ACCA TX-UK FA2025 Chapter 2 The Income Tax Computation
  • Aiko on ACCA TX-UK FA2025 Chapter 2 The Income Tax Computation
  • aesya on FA Chapter 10 Questions Books of Prime Entry

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in