Capital Allocation Survey with Commentary

Gary Venter

North American Actuarial Journal, 2004, vol. 8, issue 2, 96-107

Abstract: This paper discusses a number of methods of allocating capital to business units, for example, line of business, profit center, etc. The goals of capital allocation include testing the profitability of business units and determining which units could best be grown to add value to the firm. Methods of approaching these questions without allocating capital are included in the discussion.

Date: 2004
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Citations: View citations in EconPapers (15)

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DOI: 10.1080/10920277.2004.10596139

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