ABSTRACT
The way a firm acquires and develops finance capital depends on both its needs and its ability to satisfy the criteria of the finance capital market. Organizations acquire finance capital largely on the strength of their financial statements, balance sheet and business prospects. Many business organizations initially acquire much of their social capital by recruiting talented graduates from educational institutions. To develop their social capital, firms may attempt to influence employees’ techniques of applying expertise and knowledge, and their communication ability, and may attempt to synthesize organizational goals with individual career objectives. Careful planning may be needed to ensure optimal development of the firm’s social capital, and an appropriate division between equity and debt. In planning a social capital strategy, it is important to remember that individuals may want to decide for themselves whether they belong in the debt or the equity category.
