However, we believe the measure given by (19) is appropriately called economic profit because it directly embodies the optimizing behavior of the entrepreneur and consequently assumes the resource allocation role played by profit in traditional theory.
10) An exact measure is not needed because economic profit as defined by (19) answers the meaningful questions regarding entrepreneurial behavior.
EUR 12 billion - and more than quadruple economic profit
Differences between analyst and corporate forecasts that were due to these differing value models were resolved primarily by "talking analysts up or down to our numbers" or by translating economic profit
valuations into earnings per share information.
Capitalized economic profit
is the present worth of an entrepreneur's economic (pure) profit expectation from being engaged in the activity of acquiring an asset, or collection of assets, at a known price and then selling, or being able to sell, the same asset or collection of assets at a future uncertain price.
A wonderful business is one that consistently generates positive economic profits
for its owners.
Positive economic profits
create shareholder value, while negative economic profits
It is built upon the foundation of opportunity cost and is crucial to the construction of the total cost curve, the firm supply curve, the notion of economic profits
, and the firm's shutdown condition.
The required rate of return at each stage of the production process explains the effect of transfer pricing inflating accounting profits and hiding economic profits
At a press conference yesterday, DeNoma unveiled a 10-year business development plan, which aims to double its economic profits
(EP) annually in the coming three to five years.
Explain the difference in accounting and economic profits
in general and those reported by Isla during the June-December 2007 period.
In the nineteenth century, her subject, the French Atlantic Bassin d'Arcachon--a collection of beaches, a set of high dunes, a large salt water marsh surrounding agricultural land, and its associated fishing community--became the object of utopian plans, romantic idealizations, economic profits
, and government inquiries.
the partners' interests in economic profits
and losses (if different than their interests in taxable income or loss);
he is a pioneer in developing the managerial and valuation applications of the economic profit
concept under the banner of EVA -- economic value added.
A positive Economic Profit
indicates that management is generating value from the capital that lenders and shareholders have given it.