If a CEO wants to perpetuate value-destroying businesses, the board should actively intercede and insist on a resolution that quickly yields positive economic profits
or else remove that business from the portfolio.
Using a total cost function with this theoretical inconsistency leads to an incorrect assessment of economic profits
and may lead to incorrect decisions on the profit-maximizing production level.
Counter-intuitively, transfer pricing rules have the following effect: inflation of accounting costs on a firm's financial statements and failure to make transparent the economic profit
made by the integrated producer.
is the result of Govines dissertation for a doctoral degree in Business Administration at Beverly Hills University in 1983.
For the period between June and December 2007, Isla's monthly accounting and economic profits
were both negative, based on the calculation below:
, of which EVA is one version, are a sound economic concept.
Therefore, economic profits
of producers in jurisdiction 2 will just be competed to zero:
Nevertheless, economic profits
do occur, and expectations of continuing future economic profits
are valuable intangible assets.
They don't have much monopoly power, and any economic profits
that they start making will be gobbled up by the hyenas real fast.
The AMT was introduced to ensure that all corporations with economic profits
paid some measure of corporate income taxes.
In the absence of non-convexities, utility-maximizing firms experiencing non-negative economic profit
will choose to remain in the industry while those experiencing negative economic profits
will choose to exit.
Conversely, 42 delivered negative economic profits
Sierra Leones President Ernest Bai Koroma asked his new High Commissioner to Nigeria to assure mutual economic profits
in the bonds between the 2 nations.
3 percent year on year, but economic profits
are down 6.
As a result, Ryder's marketers are less eager to sell but more attentive to making real, economic profits
on what they do sell.