Kavan Choksi Shares a Practical View of Capital Allocation Choices Capital allocation is often described as a decision about where to place money, but its deeper meaning comes from what a company chooses not to pursue. Funds committed to one project become unavailable for another, even when several options appear attractive. Kavan Choksi highlights that opportunity cost gives business leaders a practical way to examine these tradeoffs. The relevant question is not simply whether an investment looks profitable. It is whether that investment offers a better balance of return, risk, timing, and flexibility than the alternatives. This perspective matters because capital is limited, regardless of a company's size or financial strength. A business may use excess cash to expand its operations, purchase another company, repay debt, maintain liquidity, or distribute funds to shareholders. Each choice serves a different purpose. Comparing them requires more than selecting th...