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What is the primary purpose of capital rationing in companies?
  • a)
    To invest in all available projects
  • b)
    To prevent wastage of resources
  • c)
    To maximize the number of active projects
  • d)
    To ensure stable finances and stock price
Correct answer is option 'B'. Can you explain this answer?
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What is the primary purpose of capital rationing in companies?a)To inv...
Capital rationing in companies serves the primary purpose of preventing the wastage of resources by carefully selecting and investing in only the most profitable projects. It aims to allocate capital efficiently and ensure that funds are utilized effectively to generate higher returns. This approach helps in avoiding the dispersion of resources across numerous projects and contributes to better financial management.
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What is the primary purpose of capital rationing in companies?a)To invest in all available projectsb)To prevent wastage of resourcesc)To maximize the number of active projectsd)To ensure stable finances and stock priceCorrect answer is option 'B'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary purpose of capital rationing in companies?a)To invest in all available projectsb)To prevent wastage of resourcesc)To maximize the number of active projectsd)To ensure stable finances and stock priceCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of capital rationing in companies?a)To invest in all available projectsb)To prevent wastage of resourcesc)To maximize the number of active projectsd)To ensure stable finances and stock priceCorrect answer is option 'B'. Can you explain this answer?.
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