a limited amont of capital is available
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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.
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In Britain rationing lasted 14 years. From 1940 to 1954. In Western Germany rationing lasted 15 years.
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Rationing was put in place to make Winston churchill go on a diet.