ABSTRACT
This chapter begins with a review of investment decision and implementation. It provides an analysis of the way in which a public enterprise procures capital and to questions of composition of capital. The chapter examines restructuring, a problem commonly encountered by public enterprise in many countries. Feasibility analysis refers to processed documentation which incorporates all the relevant data on the proposed investment, duly adjusted at appropriate stages for social cost-benefit purposes. Financial public enterprises intended to assist both public and private borrowers are considered as a part of the market. The government has been the major supplier of capital in the form of grants, equity, and loans. The proportions of equity and loan capital which the government provides a public enterprise have significance in some ways but not precisely in the way they have in the private sector. The most frequent factor that occasions the financial restructuring of an enterprise is accumulated losses.
