ipl-logo

Importance Of Business Efficiency In Business

746 Words3 Pages

Business efficiency is a scientific category of Microeconomic and macro economy generally. It is the goal that all economists aim with the purpose that they will gain the highest profit with the lowest cost, to expand their businesses, will occupy the market and want to improve reputation and its brand in the market.
Firstly, business efficiency reflects the ability to use the resources of the enterprise.
"Economic textbook" of P.Samuelson and W.Nordhaus wrote: "The effect that is used the most effectiveness of the economy 's resources to satisfy the demand of human 's desire", economist Prof. N.GREGORY MANKIW of Harvard University in his book "Principles of economics" that "Efficiency means that society obtained the highest results from its scarce resources." Also, agree with this opinion, economic dictionary of Manfred Kuhn wrote, "The efficiency is determined by taking the result by calculating the unit value divided the business cost".
Secondly, business efficiency of the enterprise must demonstrate both qualitative and quantitative.
To understand the real nature of the economic efficiency of business activities, we must distinguish the boundary between the two concepts it is efficiency and the result of business activities. The two concepts are sometimes understood in the same way, in fact, their difference is quite large. We can understand the result of business activities of the enterprise is what business achieved after a process of activities, which they have put

Show More
Related

  • A Case Study Of Lieutenant Barry Simpson

    1325 Words  | 6 Pages

    Overall, cost effectiveness is clearly on the economic humanism side of resolving department

    Read More

  • Why Is Bang For The Buck Important In History

    1188 Words  | 5 Pages

    After reading "Bang for the Buck", it is evident that the guns have had a special place in history. The major problem is that the political class got it all wrong when it decided to allow citizens to own guns and made it became more of a love affair. Apparently, people had held different types of rifles during the militia wars that took place a long time ago in the United States history. One most critical recognizance of the history of the guns can be seen by looking at Britain's Militia Acts that took place in 1661 and 1662. The amendment gave an opportunity for the American citizens for rival groups to fire salvos at each other, and it largely played a part in the enhancement of gun violence that is still in play in the country.

    Read More

  • Naked Economics Unit 1 Study Guide

    2181 Words  | 9 Pages

    Unit-1 Total Marks- 4 Q 1. Give different definitions of Economics. Ans. Wealth centered definition given by Adam Smith in his famous book-`` An Enquiry Into The Nature And Causes of Wealth of Nations``(1776):-`` Economics is the science of Wealth``. Welfare centered Definition given by Alfred Marshall in his book `` Principles of Economics``(1890)- `` Economics is the subject which studies the economic activities of men but on the other side this is the study of the human behavior``.

    Read More

  • William T. Cavanaugh's 'Economics And Christian Desire'

    1388 Words  | 6 Pages

    We are told that Economics is the science that studies of the resources that are scarce and hard to come by. The very basis of the market is all about trade, to give up something precious in order to receive another precious

    Read More

  • Should Canada's Economy To A Market Economy Or Stay A Mixed?

    657 Words  | 3 Pages

    Economics is the study of the production, distribution and consumption of Goods and Services. Economics is also about making choices. We make all kinds of choices everyday. How much should I spend on gas. What’s the fastest way to work, what should I have for breakfast, should I go to school, should I do my homework, etc.

    Read More

  • Lco Case Study

    879 Words  | 4 Pages

    What is Economics? Economics is the science regarding the production, distribution, and use of goods, services, resources and wealth. A large part of our economy comes from the influence and decision making of our government. The Canadian Government Established the LCBO to monitor and manage the sales and distribution of liquor across Ontario.

    Read More

  • Naked Economics Chapter 1 Study Guide

    1208 Words  | 5 Pages

    Definition of economics The study of how man and society choose, with or without the use of money, to employ scarce production resources to produce various commodities over time and distribute them for consumption, now and in the future, among people. Economics is interested in: How are choices made? How choices ought to be made?

    Read More

  • Roberts's Argument On Climate Change

    677 Words  | 3 Pages

    Economists focus on the production and consumptions of a nation. Nic Marks makes an argument against Economists. He thinks we should not focus on the productivity of a nation, instead, we should focus on the important thing which is the happiness of people. He also says "humankind can achieve comparable levels of well-being by following different routes and that happiness does not have to “cost the Earth.” (Marks).

    Read More

  • Naked Economics Chapter 1 Study Guide

    599 Words  | 3 Pages

    Economics is a science that deals with various problems which can be summarized in four questions:  What products are produced in a society and in what quantities?  How these products are produced?  How are these products distributed to the members of society?  How to increase the amount of products, namely how to develop the economy of a society?

    Read More

  • Unit 4 Economic Systems P3

    1489 Words  | 6 Pages

    Economics is the science of analyzing the production, distribution and consumption of goods and services. An economics system refers to the way in which the resources of a country are used to produce goods and services and the manner in which these goods and services are distributed for consumption. There are four types of economics systems: 1. Mixed economy-

    Read More

  • Financial Case Study: Delta Signal Company

    682 Words  | 3 Pages

    In order to, analyze the company’s performance, we will closely focus on financial performance which is the degree to which financial objectives have been accomplished. This process measures the result of the overall financial health of the company over a period. The most efficient and effective metrics we choose were the improving operating income and return on equity and increasing sales, earning per share. Firstly, our sales have gradually increased in every single period, despite the minor changes in initiatives.

    Read More

  • Four Key Business Functions

    707 Words  | 3 Pages

    99% of businesses have four key business functions, these include; operations, marketing, finance and human resource management. Each of these specific areas has their own attributions towards their businesses success and failure and often has dedicated departments and staff for these four business functions. Despite this the functions are interdependent meaning they rely upon one another to achieve and exceed their goals and expectations set by themselves and management. The function of finance affects and is affected by the other key business functions.

    Read More

  • Naked Economics Chapter 2 Summary

    395 Words  | 2 Pages

    In Economics we learned the scopes, how it describes the economic activity, gross domestic product, unemployment rate, government spending,tax rates etc. There are 3 basic questions everyone who makes a choice goes through WHAT must we produce? Society must choice based on their needs. HOW should we produce?

    Read More

  • Efficient Market Hypothesis Essay

    1444 Words  | 6 Pages

    Although, efficient market hypothesis came into light after the seminal work of Fama in 1965, Louis Bachelier, a French mathematician, should be considered as the pioneer of the conceptual development of efficient

    Read More

  • Implicit Cost Analysis

    1618 Words  | 7 Pages

    So the accounting profit may be high because it does not consider the opportunity cost; however, the economic profit will be low because it considers the

    Read More

More about Importance Of Business Efficiency In Business

Open Document