Global Business And Finance Vantage Point
In an attempt to liberalize the economy and attract international funding, many developing countries have bought into the schemes of private equity firms. As the global economic downturn
has taken its toll, there are many businesses which have either fallen or have decided to use their business equity in order to obtain funds that keep them afloat. Meanwhile private equity firms have acquired a reputation that is almost as bad as that of investment bankers today. Despite some outcry from the trade unions, many governments have given tax breaks
Business equity should be of interest to all those people who make it their business to deal with finance. Essentially it is the marketable part of the business value. Income on the other hand consists of revenues that revert back to either the business or to the owner’s personal expenditure. In order to create equity the business owner might be forced to cut down on the income in order to invest. On the other hand in order to create income the business owner might be forced to reduce his personal
When people obtain their corporate finance qualifications including the MBA, there will be a decision that will be pending. That decision is to do with whether they work for a small organization
or pitch their talents to the bigger companies. Each segment has its own advantages and disadvantages but it would appear that on first glance, it is advantageous to be linked to a bigger company.
This article aims to ask the question as to whether the small businesses have effectively been removed from the competitive edge of the corporate