Political Factors and Technological Factors - Investment Decisions

i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it will entail an element of risk of failure of that investment. Hence political certainty has to be analyzed before such type of decisions are made, such factors should be taken into account as like the company forecasts the outflows and inflows under given limitations like the degree of competition, changing tastes, performance of economy and so on such influence capability to create sufficient return from a venture that will pay not simply interest but principal on such funds invested.

ii) Technological factors - These influence the returns of the company since such technology will affect the company's capability to utilize its assets to the extreme capability in particular if that assets become obsolete and cannot produced good returns or the output of that machines may be low along with time and may not meet planned expectations such in most cases will have an impact on inflows as type of a venture.