A business concept used to calculate the optimum amount of investment by the owner(s) of a small business operation. Optimum investment level allows for maximum return on the investment for an owner of a business. In conjunction with loans, leases, and profits an owner calculates the best level of investment to maximize return and minimize losses.
When shareholders invest into a corporation, there is an expectation of limited losses amounting to the financial investment made. However, if the company is not properly run, officers, directors and shareholders are exposed to the […]