Understanding the Concepts Introduction In running a business organization, there are various important concepts that need to be put in place by the management. These concepts apply to both small and large business entities. This paper addresses the important financial ratios applied in a small business in comparison to those applied in a larger organization. The paper farther addresses the issue of debt financing, its advantages and disadvantages and the way it is applied in businesses. The concept of beta is also an important factor in a business and for that it is not left behind in this paper. Systematic and unsystematic risks are also important matters that are discussed through the paper and how they are applied in businesses. This paper will seek to analyze the importance of understanding the concepts of running a business.
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