Hard capital rationing

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Hard capital rationing

A capital budget that under no circumstances can be violated.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved