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Other factors which will affect business investment and Cameron Balloons Investment decisions There are different factors which will affect the decision that a business will make about their investments. The factors which will affect the business investment are: Capital rationing - this is when a firm has few profitable investment opportunities but do not have enough capital to fund them. There are two different types of capital rationing. One is Hard Capital Rationing and the other one is Soft capital Rationing. * Hard Capital Rationing - this will take place if the capital shortages are result of external influences. * Soft Capital Rationing - this type of capital rationing will happen because of internal constraints. Inflation - this is when prices rise, and if prices are raising speedily investment decisions become trickier. Fast inflation will decrease the value of the money and as the prices rise the value of the money in future will become valueless....

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