Managers should primarily focus on economic profits because they provide a clearer picture of a company's true financial health by accounting for opportunity costs and the cost of capital. This focus helps ensure that resources are allocated efficiently and investments are yielding returns that exceed the minimum required return. Additionally, prioritizing economic profits can drive long-term sustainability and competitiveness, as it encourages strategic decision-making that enhances overall value creation for stakeholders.
because they convey info about rewards people should anticipate experiencing by shifting resources from one activity to another
Accounting profits tend to be higher than economic profits as they omit certain implicit costs, such as opportunity costs.For example, if you invest $100,000 to start a business and earned $120,000 in profit, your accounting profit would be $20,000. Economic profit would add implicit costs, such as the opportunity cost of $50,000 should you have been employed instead during that period. As such, you would have an economic loss of $30,000 ($120,000 - $100,000 - $50,000).
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Agribusiness managers should be interested in macroeconomics because it provides insights into broader economic trends that can impact their operations, such as changes in inflation, interest rates, and employment levels. Understanding these macroeconomic indicators helps managers make informed decisions regarding pricing, investment, and resource allocation. Additionally, macroeconomic policies can influence agricultural supply chains and consumer demand, affecting profitability and growth potential. Overall, a solid grasp of macroeconomic principles enables agribusiness managers to navigate uncertainties and capitalize on market opportunities.
The colonies should give their profits to England
Managers should not focus on the current stock value because the value fluctuates daily based on market conditions, profits, management, and current economy. Managers should instead focus on the long term growth of the company.
The four criteria managers use are: Legality Economic feasibility Practicality Ethicalness
Yes, managers and non-managers should be appraised from the top and the bottom. This will help executive managers get a better idea of how they are performing.
Managers choose not to delegate all work mainly because of two reasons # The work can be critical and can be done at Manager's level # The work is highly critical in terms of transparency, which should not be disclosed to reportees or down the hierarchy
Managers SHOULD wear uniform or they look unprofessional.
Ultimately, the Board of Directors decides how profits should be spent in a corporation.
managers should never date their employees. that just leads to a bad ending.
because they convey info about rewards people should anticipate experiencing by shifting resources from one activity to another
financial managers
Accounting profits tend to be higher than economic profits as they omit certain implicit costs, such as opportunity costs.For example, if you invest $100,000 to start a business and earned $120,000 in profit, your accounting profit would be $20,000. Economic profit would add implicit costs, such as the opportunity cost of $50,000 should you have been employed instead during that period. As such, you would have an economic loss of $30,000 ($120,000 - $100,000 - $50,000).
management
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