What Is the Span of Control

question 153

Essay

What is the span of control?

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Definitions:

Economic Profits

The excess of total revenues over the total costs (including both explicit and implicit costs) of a business.

Entrepreneurial Talent

The unique set of abilities, creativity and initiative needed to identify market opportunities and create new businesses.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources that it already owns, without directly paying for them.