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Internal capital rationing occurs when a company imposes its own limits on capital expenditures due to factors like budget constraints or management decisions, often prioritizing certain projects over others. External capital rationing, on the other hand, arises when a company faces restrictions in accessing external funds, such as loans or equity financing, due to market conditions or investor perceptions. Both types of rationing can impact a firm's investment strategy and growth potential.
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What is growth maximisation?
Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization
What is maximise?
Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization
What does capital rationing assumes?
a limited amont of capital is available
Does the Atlantic salmon have internal or external fertilization?
internal external not internal external not
What does source of finance mean?
sources of finance is where a business can get money from. there are two types where money can be found internal and external. internal are things like the owner's capital and external are things like loans.
Is bearded dragons development internal or external?
its internal
What is hard capital rationing?
A capital budget to which a company must adhere. A company may engage in hard capital rationing if it has limited resources and has allocated them in such a way as to allow little or no room for error. A project that goes over budget under hard capital rationing may land the company in trouble.
Is a polar bear external or internal?
Is a salmon internal or external?
What is internal and external sources?
What is internal and external sources?
Is fertilization external or internal in sparrow?
internal
Is the story Eleven an internal or external conflict?
external
Is a keyboard internal or a external devise?
External. Internal devices would be something like a CD Drive, while an external device is a keyboard or mouse for example.
