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Essay

Business Finance

Essay specific features

 

Issue:

History

 

Written by:

Ricky S

 

Date added:

March 10, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

1 / 276

 

Was viewed:

5156 times

 

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Essay content:

Obviously, any responsible company will choose to employ strategies that support the productive use of disposable funds built within a capital budget. At the same time, it is important to understand what benefits can reasonably be expected from owing the asset in question. Since capital rationing is all about setting criteria that any investment opportunity must meet before the company will seriously entertain the purchase, many businesses choose this strategy as their guiding process for any acquisitions...
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Using the basic principles of the technique, a company can develop a list of standards that must be addressed before any capital purchase. If the standards are drafted in a manner that accurately reflects the current condition of the company, then there is a good chance the right types of investments will be considered...
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