If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of

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When a firm has a limited capital budget and too many good capital projects to fund them all, it faces the problem of capital rationing. This occurs when a company has to prioritize and select which projects to fund based on the limits of its available capital, even though there may be worthwhile projects that won't receive funding. Constrained capital, wealth optimization, and profitability are all related to capital budgeting decisions, but they do not specifically refer to this scenario of having too many good projects and not enough funding.

If a Firm Has a Limited Capital Budget and Too