Capital as a limited Source of Funding and the Appraisal of Projects

Abstract

Capital is essential for the purpose of expanding and or diversifying their activities in existing firms and for the new firms capital is an aid to the commencement of their operations. The limitation is that capital isn’t sufficient for entities to carry out all the projects and activities that are necessary to achieve their objectives i.e. capital are a scarce resource. This article thus focuses on capital as a limited source of funding and the appraisal of projects.

The details in this article are entirely collected through secondary research due to the specialised nature of the article. Information is specifically obtained from scholarly articles in finance and management, various text books in finance and management and journals from professional bodies ACCA, CIMA, ZICA and AAT.