Differentiate between the single period capital rationing and-01997
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vu mgt501 Human Resource Management.
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vu mgt501 Mid Term Solved Past Paper No. 1.
Single period capital rationing
It is a situation where the company has limited amounts of funds in one investment period only. After that period, the company can access funds from various sources, e.g. issuing shares, borrowing from banks or issuing bonds.
Multi-period capital rationing
It occurs where the company has limited amounts of funds for a longer duration of time. The capital constraints extend beyond one investment period. If we assume that it's possible to undertake fractional projects then the problem can be formulated using linear programming. If the projects are indivisible, however, then integer programming should be used.
