HUMAN FACTORS-CAPITAL

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CHAPTER 4: THE BEHAVIOR OF INTEREST RATE

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HUMAN FACTORS-CAPITAL

LOANS

high interest rates

decrease capital avilable for companies to set up and maintain operations.

low interest rates

increase capital avilable for companies to set up and maintain operations.

EXAMPLE: SINGAPORE GOVERNMENTBUILT MANY FLATTED FACTORIES .

TO PROVIDE COMPANIES WITH SPACE TO CONDUCT THEIR ACTIVITIES.

ENTREPRENEURS COULD SAVE BOTH TIME AND MONEY AND DO NOT NEED TO CONSTRUCT OR PURCHASE THEIR OWN FACTORIES.

NEEDED IN MANY AREAS

TRANSPORTING FINISHED GOODS.

PURCHASING RAW MATERIALS & MACHINERY.

CONSTRUCTNG OR RENTING BULIDINGS.

REFERS TO FINANCIAL RESOURCES NEEDED TO SET UP RUN BUSINESS OR INDUSTRY.