Capital rationing is a constraint placed on the amount of funds that can be invested in a given time period.

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Capital rationing is a strategy or decision-making process where a company or organization limits the amount of capital it invests in new projects or ventures. This limitation is due to constraints on available resources, aiming to allocate funds in a manner that maximizes shareholder value and ensures the most efficient use of capital.

Capital Rationing Is a Constraint Placed on the Amount of Funds