____ involves selecting projects subject to a funding limitation.

Question

Quizplus · Accepted Answer

Capital rationing is the process of selecting the most profitable projects for investment, subject to a constraint on the total amount of available capital. It involves prioritizing and funding only the projects that offer the highest returns within the limited budget. Capital budgeting is the broader process of evaluating potential investments and deciding which ones to pursue, without necessarily considering funding limitations. Cost of capital and capital financing are related to the financing of projects and determining the appropriate financing mix, but not specifically related to selecting projects under budget constraints.

____ Involves Selecting Projects Subject to a Funding Limitation