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Venture Capital Investing: The Complete Handbook for Investing in Private Businesses for Outstanding Profits by Laura Gladstone, David Gladstone

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Chapter 5. Investigating Production

Every business involves production. Even a service company follows some production process in order to deliver the service to the customer. Every investor should understand the process by which the product or service is produced for the customer. Most of this chapter deals with the manufacturing process. However, the investor should become familiar with all the stages of production in order to understand this area.

The production process also includes purchasing. Here you will identify the suppliers for the business. In addition, there is usually a shipping and a receiving area; both of them need to be examined. Customer services usually pertain to the production area. That is, after the product has been shipped ...

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