The process of identifying the bundle of projects that creates the greatest total value and allocating the available capital to the projects is known as
A) risk analysis.
B) budgeting.
C) rationing.
D) capital rationing.

Question

Quizplus · Accepted Answer

The process described in the question is called capital rationing, which involves prioritizing and selecting a bundle of projects that will create the highest total value within the constraints of a limited capital budget. Risk analysis may be part of the decision-making process, but it is not specifically mentioned in the question as the primary focus. Budgeting is a broader term that encompasses various financial planning and management activities, but it does not specifically relate to identifying and allocating capital to specific projects. Rationing, in general, refers to limiting the availability of resources or goods, but it does not necessarily involve the process of selecting a bundle of projects for investment.

The Process of Identifying the Bundle of Projects That Creates