Comment on the Following Statement by Peter Drucker: "In the Case

question 203

Essay

Comment on the following statement by Peter Drucker: "In the case of knowledge workers,the employer no longer owns the tools of production.Today it is the employee that owns them."

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Definitions:

Owners' Equity

Represents the residual interest in the assets of a company after deducting liabilities, essentially the owner's claim against the company's assets.

Assets

Resources controlled by a business as a result of past events and from which future economic benefits are expected to flow to the entity.

Cumulative Effect

The total impact of a change in accounting principle or correction of an error reported in a single period's financial statements.

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, often requiring retrospective application to prior period financial statements.