Business & ManagementIB

Qualitative factors influencing investment decision

Qualitative factors influencing investment decision...Human resources: some investment projects might affect the staff greatly. For example, if a business invests in plant automation...
Qualitative factors influencing investment decision

Human resources: some investment projects might affect the staff greatly. For example, if a business invests in plant automation, it might mean mass redundancies or the workforce may become scared for their jobs, dropping their motivation.

Availability of funding: finding the appropriate source of finance is essential.

Government legislation: for example, a business may have to install anti-pollution equipment to bring down its emission levels, to conform to government laws.

Business confidence: entrepreneurs, managers and businesses tend to have different attitudes and cultures from each other. For example, cautious, non-confident entrepreneur may delay or abandon possible investment projects.

Ethical considerations: making unethical investments might affect business’ brand image and profits.

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