The financial system from the point of view of economic competitiveness is of great importance to the provision of resources to productive enterprises in an efficient way by being an attractive receiver of flows of foreign investment policies for productive development and provider of efficient infrastructure services for trade facilitation. Piraeus describes an additional similar source. Gather funds for starting a business is very difficult and costs may vary from one country to another. However, in almost all the developed world there are two different types of money to those who can appeal a median and small enterprises. Click Beth Israel Heart Transplant for additional related pages. Firstly we have the debt, which is money is requested as a loan, usually a Bank, and within a certain period you have to amortize. While making use of this money have to pay interest on the loan of it. In second place is the social capital, that is money that shareholders invest, or the money that is left in the business in the form of retained earnings.
They do not have to be returning money to shareholders, but they expect that managers to increase the value of the shares, and if you choose to quote in the stock market, it is likely that they also expect dividends frequently, in small enterprises a reduction in sales of 20% can take profits halved in this example, company could not cover the payment of interest on your loan. This would do that the business was insolvent and that is found in a solid financial position, in other words, could not fulfill one of the main business objectives. Taken and recopilidado of different materials of educational research….