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.
Volume
8
Page
96-107
Number
2
Year
2004
Categories
Capital Allocation
Publications
North American Actuarial Journal