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Nessie000 Posted 17 years ago
Grammar
'earn the cost of capital'?
Hi,
Please have a look at this:
Use your influence and persuasion to show where resouces need to be extracted, because that part of the business won’t earn the cost of capital and get commitments to move those resources quickly
What does the bold part mean?
Many thanks,
Nessie.
Please have a look at this:
Use your influence and persuasion to show where resouces need to be extracted, because that part of the business won’t earn the cost of capital and get commitments to move those resources quickly
What does the bold part mean?
Many thanks,
Nessie.
Top answer
Capital is money used for investment in long-term income-producing assets. For example, a car company needs capital to build its manufacturing plants, an oil company needs capital to drill an oil well. This money must be spent before the company can earn any income.
- Capital is money used for investment in long-term income-producing assets.
- For example, a car company needs capital to build its manufacturing plants, an oil company needs capital to drill an oil well.
- This money must be spent before the company can earn any income.
- But there is a cost that goes with this capital.
- For example, the money can be borrowed from investors with a promise to pay them interest.
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1 Answers
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Capital is money used for investment in long-term income-producing assets. For example, a car company needs capital to build its manufacturing plants, an oil company needs capital to drill an oil well. This money must be spent before the company can earn any income.
But there is a cost that goes with this capital. For example, the money can be borrowed from investors with a promise to p
But there is a cost that goes with this capital. For example, the money can be borrowed from investors with a promise to p
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