economic theory

A small company will have to ensure its capability of all three in spite of the fact that in comparison to a larger company, it will be paying a higher interest rate, will be risking security based on the owner’s personal assets rather than company assets and repayment terms will probably be more rigid rather than flexible as banks rightly see the small company borrower as a higher risk. (This is explained later on …

…small companies a greater freedom in their investment decision process because rentals are operating expenses. Bibliography International Economics: theory and Policy. Paul R. Krugman, Maurice Obstfeld, Addison Wesley, 1998 Butterfly Economics: A new general theory of social and economic behaviour. Paul Ormerod, Pantheon Books, 1999 Money Greed and Risk: Why financial crises and crashes happen. Charles Morris, Times Books, 1999 Statistical Techniques in Business and Economics. Lind Mascon, IRWIN, 1995 Economics, fifth edition. David Begg, McGraw-Hill Book Company Europe, 1997