How can a firm overcome capital rationing problems?

CPA-Financial-Management-Section-3 Revision kit

As an alternative to direct investment in a project, the company may be able to consider a licensing or franchising agreement with another enterprise, under which the licensor/franchisor company would receive royalties.

It may be possible to contract out parts of a project to reduce the initial capital outlay required.

The company may seek new alternative sources of capital (subject to any restrictions which apply to it) for example:
(i) venture capital
(ii) debt finance secured on the assets of the project;
(iii) sale and leaseback of property or equipment;
(iv) grant aid;
(v) more effective capital management

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