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What do you mean by Risk factors and capital rationing?
Risk factor is like any company or business concerned about the investments before investing in any project. They keep in mind to protect their companies from being destroyed.
Whereas, capital rationing the process of setting boundary to any new savings and projects by improving the investments and the capital progressively yet steadily. So following are the types of capital rationing:
- Hard capital rationing
- Soft capital rationing
Want to know more?
When any business or company have estimates about their budgets and assets, to enlarge their property, these companies perform the activity known as the capital budgeting. Specially appointed people are responsible for the duty of expanding their assets and budget. So thereby, our meaning and definition of capital rationing and risk factor in capital budgeting homework help will help the students to get through the concept more easily.
However, the whole system is a long term process. Both of these are equally important for any ongoing running business. Therefore both of these are measured when formulating capital budget of any company.
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