Integrated decisions
There are some areas of business finance that do not fall distinctly into the
categories of either investment or financing, but involve some combination
of both. These are discussed in this part of the book.
Working capital, the subject of Chapter 13, consists of the business’s short-
term assets and liabilities. Since these are in a constant state of change, as
the business carries out its normal activities, decisions on investment and
finance are frequent and, for the most part, routine.
Progressive businesses in an open economy should be constantly seeking
ways of reorganising themselves, so as best to be able to relate to their
environment and to achieve their objectives. Such reorganisations are
the subject of Chapter 14. These typically involve altering some fairly
fundamental aspect of their investment or financing strategy.
Most businesses have some international aspect. Even those that do not
themselves trade internationally can be significantly affected by aspects
of international business finance. Chapter 15 considers the benefits and
problems of international business from a financial point of view.
Small businesses are consistently seen as a major part of the future.
Chapter 16 considers to what extent, if at all, small businesses should be
treated differently from large ones with regard to making financial decisions.
PART 4