capital allocation

Capital allocation is the process of deciding how to distribute financial resources, such as money or investments, among different projects or areas within a business or organization. It involves assessing potential returns and risks to determine the best way to use funds to achieve strategic goals. Effective capital allocation helps ensure that resources are used efficiently to maximize growth, profitability, and overall value. It is crucial for businesses to prioritize their spending in a way that aligns with their objectives and long-term success.