If you owned a small business and last year it made a profit of £30000, would you feel it had done well or badly? What would be your reasons?
Would you say the same thing if the capital you had invested in the business had been £100000, (b) £600000?
In which of the two situations might you have bean better advised to have put your capital into a building society? Why? What ‘non-financial’ factors might you have thought about when making a decision?
KeywordsBalance Sheet Trade Creditor Additional Investment Building Society Historical Cost
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