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LOS Chapter 2

Reading 9/16/12

QuestionAnswer
Strategy framework goals, values, performance of firm
Firm operates in best interest of owners by maxing profits
Profit isn't the only thing strategy is about creating purpose and committing revenues and principles
Financial analysis primarily useful for analyzing past performance. Concerned with creating value in the future.
Value added sales rev from output - cost of material inputs
normal return on capital rewards investors for the use of their capital
economic profit pure surplus available after all inputs have been paid for.
Created by: Elisahbeth
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