Question

what would be needed to support a capital acquisition that would improve efficiency, quality, customer satisfaction, and overall effectiveness within the organization.

Answer 1

Answer -

The capital acquisition may be defined as in order to acquire assets in the company for its expansion or to increase the scale of production. the company need assets like equipment, inventory, software etc

The basic motive of acquisition requires the growth of overall profit of the business and in order to acquire acquisition financing, the firm does have various financing options available in the market which will provide low-cost to the company in terms of interest burden.

Deficit financing maybe in the form of equity or debt. In terms of the option of equity, the firm may issue equity shares while in case of debt financing the firm may use the option of loans or venture capital financing or private equity funds. it all depends on requirements of the company.

Benefits -

1. Deficit financing can improve the efficiency of the company in terms of expansion and now the company will be in a condition to acquire the good quality of machines and upgrade the exist in technology.

2. Deficit financing can also improve the quality aspect of the company in terms of various quality methods or certification or process can be followed so that company can create a distinguished image in the market in front of its customer

3. Customer is like a God for the company and the satisfaction is the at most priority of any of the corporation so while the customer does have ample options available to purchase a single commodity, he will always compare on the basis of quality aspect of the products and in turn customer satisfaction depends on the expectation of the customer from the company.

4. In integration, if we will talk about the companies overall performance effectiveness and efficiency will increase while adopting good quality of machines latest technology and efficient and skilled manpower or human resource in the company so that company can achieve good market share as compared to its competitors.