Objectives of capital rationing assignment help

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Let me first define capital budget before getting into its objectives

Capital budgeting is the process of making investment decision in fixed assets or capital expenditure. Capital budgeting is also known as investment, decision making, planning of capital acquisition, planning and analysis of capital expenditure. A capital budget determines funding for assets that produce income, and you will have to make decisions about which assets to buy based on clear set of objectives.
Capital rationing is a strategy used by organizations attempting to limit the costs of their own investments. Typically, a company engaging in capital rationing has made unsuccessful investments of capital in the recent past and would like to raise the return on those investments prior to engaging in new business.
The main objective of capital rationing is to protect a company from over-investing its assets. if this were to occur, the company might continue to see low return on investments and even face a compromised financial position.

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    • The objectives of capital rationing has been well summarised by the experts of Best UK USA AUSTRALIA CANADA UAE objectives of capital rationing assignment help service as below:

 

1. Deciding on priorities.
2. Investing on assets to get returns.
3. Line up with marketing plan.
4. Project growth
5. Seeking to avail cost with least objectives.
6. Tackle debts.
7. Increase preserved earnings.
8. Look forward to inflation.
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