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Determine the Balancing risk and return
All decision making involves future and business decision making is no exception. Only thing certain about the future, though, is that we can't be sure what would happen. Things may not turn out as planned and this risk must be carefully considered when making financial decisions.
As in other aspects of life, risk and return inclined to be related. Evidence demonstrates returns relate to risk in something like the way illustrated in Figure below.
Evaluate the importance of leverage in financial management of a small scale company
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