ABSTRACT
This chapter classifies the changes which are most likely to affect business as: political change; change in money values; economic change; and technological change. In recent years, the pace of change has been rapidly accelerating. Inflation is a subject in itself, in its proximate or further consequences perhaps the most important with which the financial manager has to deal. Various factors have brought this about, especially the transferability of industrial skills and the ability to plan on a large scale. Very high growth rates throughout the industrial world has resulted in great pressure on many raw material supplies, of which oil is only one example. The juggling of several variables in relation to the raising of capital can be facilitated using a linear program model. A variety of variables can be introduced to test the effect of the more probable occurrences, such as exchange and interest rate changes.
