Capital allocation refers to the deployment of funds across various units or projects within an organization based on calculated potential returns and risks, often employing techniques like value-at-risk (VaR) and contributing to metrics such as shareholder value and Economic Value Added (EVA).
Other People's Money (OPM) refers to the financial practices of leveraging borrowed funds or investment capital instead of using one's own resources to facilitate business activities and financial growth.
The amount of money utilized to acquire a business or investment, irrespective of the source.
