Subject category:
Finance, Accounting and Control
Published in:
1988
Length: 5 pages
Data source: Generalised experience
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Abstract
A small company in the electronics and light engineering industry, is experiencing a rapid growth in demand for its products. Additional production facilities are required, which will mean an expansion of production floor space. Alternatives under consideration are to extend the existing premises, move to larger premises in the same area, or relocate to an industrial estate in a development area in a remote part of the country. The case was designed to highlight two of the mainstream considerations of financial decision making, profitability and liquidity. It can be used to integrate finance, accounting, and information systems by also considering sources of finance, project management, and techniques for refining the decision making process.
About
Abstract
A small company in the electronics and light engineering industry, is experiencing a rapid growth in demand for its products. Additional production facilities are required, which will mean an expansion of production floor space. Alternatives under consideration are to extend the existing premises, move to larger premises in the same area, or relocate to an industrial estate in a development area in a remote part of the country. The case was designed to highlight two of the mainstream considerations of financial decision making, profitability and liquidity. It can be used to integrate finance, accounting, and information systems by also considering sources of finance, project management, and techniques for refining the decision making process.