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Financial Management leverage.

Babulal Maurya
01/06/2018 0 0

Managing finance is not tricky but requires smart work. It is because every rupee has the opportunity cost when ideal, and this opportunity cost forces the investor to part away their money for some return. This offer push businesspeople to take and use and earn extra. But the situation is most versatile in the market. Here leverage starts working. It slowly creeps in and affect operation and liquidity and start playing. Pressure falls on fixed cost recovery because profit goes smoothly in the hands of lender and business begins compromising price and discount. Also, lender now becomes more in control. He gives more and starts operating.
A lot of business went bankrupt, the latest example of which is reliance communication.
Borrowing is healthy if taken care of. We must hire what can be handled any time.

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