The process by which management allocates available investment funds among competing capital investment proposals is termed capital rationing.

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Capital rationing involves allocating limited investment funds among different projects or proposals, often with the goal of maximizing overall returns or achieving specific strategic objectives. This process typically involves assessing the potential risks and benefits of each investment opportunity, weighing the available funding against competing demands and priorities, and making informed decisions about which projects to pursue and which to defer or reject.

The Process by Which Management Allocates Available Investment Funds Among