First of all, it is necessary to decide what an enterprise is in modern conditions as a management system, or a management system. Let’s look at the business through the eyes of its owner, who does not have an MBA degree, but simply investd his money in one or another production. There is no doubt that the owner, when formulating tasks for the management team, wants to achieve, mainly, the fulfillment of the following two target functions: buy (inputs) cheaper and sell (finishd products) more expensive, have enough money to pay on time and use it for your own neds.
An Then It As Final Implementation
If we translate these wishes of the owner into generally acceptd terminology, then we can formulate the dual purpose of the business Hotmail Email List in the form: profit increase, the ability to generate sufficient cash to operate the business. Thus, we can conclude that the enterprise is a mechanism that turns the intentions of the owner and top management into profit and money. Another important factor to be notd is the ratio of the capital investd by the owner and the amount of profit receivd.
After Testing Employees Approve
Ten million dollars in profit in a year is, of course, a lot. But if the owner has investd 100 million in the business, then the return on investd BQB Directory capital (the ratio of profit to the amount of investd capital) turns out to be not so significant, namely, 10%. At the same time, it is easy to get a return of 50% if you invest $10,000 in a simple business. But the absolute amount of profit in the form of $5,000 is unlikely to be of interest to a serious entrepreneur. Thus, it is important to compare profits with the amount of capital investd in the business. The above arguments allow us to formulate the key goals of any owner-orientd business: the maximum value of profit for the period.
