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What is capital rationing? Should a firm practice capital rationing? Why?
Capital rationing is the practice of putting dollar limits on what will be invested in new capital budgeting projects. Private corporations, partnerships and Proprietorships are in a position to do whatever the owners wish. It can be disputed, but, that for a publicly traded corporation capital rationing may not be steady with maximizing the value of the firm. This is because various value adding projects may be rejected if they would cause the firm to go beyond its self imposed capital rationing limit.
TYPES OF DIVIDEND POLICY 1. Regular dividend policy: Payment of dividend at standard rate is known as regular dividend policy. 2. Stable dividend policy: Payment of fix
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Outsourcing Outsourcing is referring to purchase of parts from outside suppliers. Outsourcing is the external acquisition of services or components used in the production of go
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