Definition

Cancellation provision

Cancellation provision is the process of comparing and evaluating alternatives in order to budget funds for future, generally major, investments that are usually ranked on the basis of their return potential.

Share it:  Cite

More from this Section

  • Patent
    A patent is a grant from the government conferring the rights to exclude others from making, ...
  • Forecasts
    Forecasts are an estimate of a firm’s future income and expenses, based on its past ...
  • Moral hazard
    Moral hazard is a problem a firm faces as it grows and adds personnel; the assumption ...
  • Derivative works
    Derivative works, which are works that are new renditions of something that is already ...
  • Relevant industry experience
    Relevant industry experience, experience in the same industry as an entrepreneur’s current ...