093 682 682 | 078 868 848 | info@pp-hr.com | Join Discussion | ខ្មែរ | English  | 日本語 | 中文  | ไทย한국어Tiếng Việt

What is Capital Rationing?

What is Capital Rationing?

Capital rationing is restricted on the amount of new investments or projects undertaken by a company.There are two types of capital rationing. The first type of capital rationing is referred to hard capital rationing.This occurs when a company faces issues raising additional funds, either through debt or equity. The rationing arises from an external factors , and can lead to a shortage of capital to finance future projects. The second type of rationing is called  soft capital rationing or internal rationing. This type of rationing comes about due to the internal policies of a company. For example, company may have a high required return on capital in order to accept a project or self-imposing its own capital rationing.

Capital rationing is necessarily a management approach to allocate available funds across multiple investment opportunities.The combination of projects with the highest total net present value (NPV) is accepted by the company.

 

 

Find Jobs Here !

Featured Jobs

Responsibilities Responsible for all underwriting matters related to acceptance of risks/policies and ensures that it is in compliance with the company’s business strategies and risk acceptance guidelines. Conducts review on new and renewal cases. Ensures that issuance of policy documentation is within the timeframe set. Handles enquiries from customers, agents, brokers, reinsurers and internal customers. Provides technical underwriting support to
Responsibilities Sells and markets a wide range of general insurance products and services to meet set targets.  Requirements A recognised University Degree preferably related to Finance and Marketing; Experience in the sales of insurance or financial products will be an advantage; Outgoing with excellent interpersonal and communication skills. Ability to converse in Chinese will be an added advantage. Committed, highly
Loading...