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Amalia Is an Operations Manager at a Medium-Sized Service Firm

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Amalia is an operations manager at a medium-sized service firm. Amalia is recommending that her firm use the Internet to make its services more readily available to its customers. Amalia's recommendation reflects a growing trend in service-sector firms.


Definitions:

Time Value

The concept in finance that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Calculation

The process of determining a numerical result based on mathematical operations or algorithms.

Average Accounting Return

A financial ratio that measures the average net income that a firm generates as a percentage of its average book value of equity.

Market Values

The existing selling or buying price for assets or services in the marketplace.

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