BUS3 189 Chapter Notes - Chapter 5: Balanced Scorecard, Total Return, Market Capitalization
Document Summary
Allows the assessment of the firm performance to be accurate. Allows the firm to benchmark their performance to their competitors in the same industry. Most commonly used metric is roi capital. Since accounting data is historical, it looks backwards. Shows the outcomes of past decisions that were made. The data mainly focuses on tangible assets. Intangible assets are more important but they"re not captured through the accounting data. Definition: the 15094 provided by shareholders for equity share in a comp. Can"t be recovered if the org. goes bankrupt. Captures the dollar market value of the organization"s total outstanding shares. Macro-econ factors have a direct effect on stock prices. $ a consumer is willing to pay for the comp. "s prod/serv. Diff. between price charged and cost to produce (p-c) Diff. between value of the good for consumer and how much they paid for it (v-p) but it takes only to produce. If apple charges ,000 for an iphone.
