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Rationing is the controlled distribution of scarce resources, goods, services, [1] or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, although rationing by price is ...
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization ...
The rationing and price controls enforced in many countries during World War II encouraged widespread black market activity. [25] One source of black-market meat under wartime rationing was by farmers declaring fewer domestic animal births to the Ministry of Food than actually happened. Another in Britain was supplies from the US, intended only ...
Capital adequacy ratio is the ratio which determines the bank's capacity to meet the time liabilities and other risks such as credit risk, operational risk etc. In the most simple formulation, a bank's capital is the "cushion" for potential losses, and protects the bank's depositors and other lenders.
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one person's allotted portion of the resources being distributed on a particular day or at a particular time.
Credit rationing is not the same phenomenon as the better-known case of food rationing. Credit rationing is the result of asymmetric information whilst food rationing is a result of direct government action. With credit rationing, lenders limit the risk of asymmetric information about the borrower through a process known as credit assessment.
Hence, we see credit rationing as a result of imperfection in capital markets. Credit rationing is not just caused from asymmetric information but also from limited enforcement in case of default. There are also costs used for law enforcement in order to get back the funds and in most of the case there is also possibility of not taking back at ...
r is the rate of return a for-profit utility is allowed to earn on its capital investment or on its rate base. Non-profit utilities, such as those owned by states or municipalities, or those owned by customers in rural areas (common in the United States) do not add an "r" in the Revenue Requirement formula, nor do they incur income tax expenses.