Monday 13 September 2010

Manufacturing Business

Schematic
Below is a Schematic of a typical , although simplified is still much more complex that the other schematics in this series.

The fact that land, building and equipment requirement leads to a relativly high capital cost complicated matters.

Although you should bear in mind that frequently the returns increase as the capital costs increase. Also the land, building and equipment will maintain a value even if the business has difficulties, although these items will normally be used as security with the bank.

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