Content1. Trade...............................................................................................................................51.2. Factors influencing terms of trade in developing countries ......................................................... 72. The Production Theor......................................................................................................112.1. Production in the Short Run ...........................................................................................142.1.1. Factor?Product Relationship ?The Three Stages of Production ........................................... 162.1.2 Product?product relationship. ............................................................................................. 202.1.3. Factor – Factor Relationship ................................................................................................ 233. The Enterprise ..............................................................................................................283.1. Business life cycle ...................................................................................................... 334. Financial structure of a company .........................................................................................394.1. Assets of a company ....................................................................................................414.2. Liabilities and equity ................................................................................................. 434.3. Depreciation ......................................................................................................... 465. Capital structure of thecompany........................................................................................................ 585.1. Forms of business financing .................................................................................................... 615.2. The relationship between the assets and the sources of its coverage ................................... 655.3. The total working capital need ................................................................................................ 686. The optimal capital structure..........................................................................................736.1. Cost of Capital........................................................................................................746.1.1. Cost of Debt? rd .....................................................................................................746.1.2. Cost of equity?re.....................................................................................................767. Capital structure theories .............................................................................................. 808. The theory of costs .................................................................................................. 928.1. Economic versus accounting cost concept .................................................................................. 948.2. Type breakdown of costs ..................................................................................................958.3. Production costs in the short?run ..........................................................................................988.4. Development of costs according to volume .............................................................................. 1019. Profit and the Break – Even Analysis ..........................................................................................1079.1. Profit .........................................................................................................................1079.2. Rev