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What is the economic effect of the business?

The true essence of the economic effect of any event implemented in a commercial organization is that it should lead to an increase in economic value directly of money or other liquid asset.

Those who evaluate the economic effectiveness of an event based on profit are either crooks or people who do not understand economics.

Well, or they just don't understand the essence of such an economic criterion as profit.

The only correct criterion for evaluating economic efficiency is the growth of money or the growth of the asset that is being evaluated.

For example, we bought a machine and want to evaluate the economic effectiveness of this event, its work.

So, it should be evaluated either by the increase in money from the operation of the machine relative to the initial investments that settle on current accounts, or by the increase in the value of the asset itself relative to its initial value - in other words, the increase in capitalization of that asset the same machine.

But not with profit.

Because profit is not money.

The economic effect should be expressed through an increase in economic value.

☝️Now imagine what they teach you in school)

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

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Там я ничего не втюхиваю и не навязываю. Просто делюсь некоторой интересной информацией по разным экономическим аспектам. Может, будет интересно !

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