Economics Today and TomorrowChapter 10:
Financing and Producing GoodsChapter OverviewsDecisions about financing and production are the first steps in making goods and services available to consumers and industry. Chapter 10 explains the sources and allocations of funds for business investment and describes how businesses make financing decisions. The chapter also describes different production methods and explores the impact of technology on these methods. Turning Savings Into Investments
Section 1 explains how savings are used as investment funds to finance business startup and growth. It also describes how companies use cost-benefit analysis before deciding whether to pursue expansion and financing in the first place. Three Kinds of Debt Financing
Section 2 explains three kinds of debt financing according to the length of repayment: short-term, intermediate-term, and long-term financing. The section also describes several types of debt. Before borrowing funds, businesses must consider the cost of borrowing (interest rates), the financial condition of the company, the market climate in general, and whether stockholders will approve. Production
After financing has been obtained, businesses can begin production. Section 3 explains four steps in production operations—planning, purchasing, quality control, and inventory control. This section also takes a historical look at how technology has changed methods of production since the Industrial Revolution in the late 1700s.  | 
