Any business wanting to attract financial capital must expect to

Question

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When a business attracts financial capital, the investors will expect a normal rate of return on their investment. This is the minimum rate of return required for investors to part with their money and compensate them for the risk they undertake by investing in the business. A positive economic profit or minimizing implicit costs are desirable outcomes for the business, but they are not the only factors that investors consider when deciding whether or not to invest. Additionally, a business that pays a below-normal rate of return may be seen as unattractive to investors, as it suggests that the business is not performing well and may not be able to sustain itself in the long run.

Any Business Wanting to Attract Financial Capital Must Expect to