• 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 March 2025 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 7 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: 54804
    • ☆☆☆☆☆

    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

Donate
If you have benefited from our materials, please donate

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 2025 Exams

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

  • sanjarmakh on Revenue – Example 5 (profitable contracts) – ACCA Financial Reporting (FR)
  • Kuzik on Chapter 2 – Income tax computation TX-UK FA2023
  • nuellaa on Chapter 2 – Income tax computation TX-UK FA2023
  • Rimshaasif on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • cookieontop on Elements of the financial statements – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in