Capital expenditure is that expenditure which generally results in the acquisition of an asset and further helps the business to improve its earning capacity and resource optimisation whereas, any expenditure which is not a capital expenditure and which is incurred for carrying out the day-to-day activities of the business is known as revenue expenditure.
Building a successful, fundamentally sound, financially strong, promising, great reputational and generational business, there needs to be a decent cash inflow
Having the right and accurate financial information can be a game changer element in your personal as well as professional life, it not only helps individuals master their personal financial objectives but also helps them to be better capital allocators, financial controllers, financial managers, entrepreneurs, company owners.
Building a great and effective business needs a strategic framework and an excellent execution system on a consistent and continuous basis.
Great leaders are great planners who can analyse a given situation and build an ecosystem to reach the end potential.
Capital rationing is a situation, whereby, the funds available for completing a project are limited.
It is a situation where a constraint or budget ceiling is put in place on to the total size of capital expenditure under the assumption that the availability of financial resources is quite limited.
It is a financial strategy used by companies or financial institutions or investors to limit the number of projects to be taken up at a time. If there is a pool of available investments which are expected to be profitable, the strategy of capital rationing provides the investors with the most profitable one to choose from.