What is a business economy?
Business Economics focuses on financial elections of companies and how they decide to control their resources. The study and practice is a subset of microeconomics that examines the action and results of individuals rather than the overall average. In the business economy, there are issues of expansion, bankruptcy and dissolution, management structures, business relations, capital projects and investment strategies. The company must not only consider the price to do something or do something, but a qualitative advantage that could be obtained or lost. For example, the cost of an employer's opportunity that does not offer health insurance benefits to its employees would be an increased probability of turnover, poor will and dissatisfaction with work. The benefits of offering a substantial plan for adequate costs may include increased satisfaction with work, maintaining, improved attitudes and positive word advertising. The business economy is considering how companies make these decisions and what economic factors can affect them. Companies have a certain amount of resources per pRác, but may have to get more to achieve their strategic goals. Capital investment in a new production facility that eventually increases efficiency and reduces costs may require the company to look for external funding sources.
In finding this financing, companies must decide which types of money they have the least amount of risk. If the company receives most of its financing from an angel investor - a rich individual who uses his own money to invest - its real financial costs may be reduced if the investor is willing to lend them funds with a very low Terest rate. In exchange, however, the angel investor may want to serve on the board of directors or have a performance control over the capital project. Loss of control and entering the outsider into the company's decision -making would be the cost of the opportunity.
During this type of decision -makingthat the company decide that the costs associated with issuing debt in the form of bonds are too high. He then looks for a substitute compensation that will still meet his financing needs. Publishing your own capital in the form of ordinary shares may prove to be a more suitable choice. Regarding the business economy, a company acting reasonably finds a selection that minimizes its costs and at the same time maximizes its advantage.