Hard capital rationing

A capital budget that under no circumstances can be violated.

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. See also: Capital rationing.

References in periodicals archive

The first is known as hard capital rationing, which exists when external finance providers (shareholders and lenders) refuse to provide the company with any extra money.

Management accounting--decision management: gain-sharing deals are, on the face of it, a win-win situation for suppliers and their customers. Tim Thompson examines their possibilities and practicalities

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.