The Vision for Your Business Is Narrower and Less Comprehensive

question 18

True/False

The vision for your business is narrower and less comprehensive than its mission.

Calculate the rate of total return on an investment property.

Understand the impact of percentage increases and decreases on investment value.

Calculate the income yield from a rental property investment.

Understand and calculate capital gain yield on real estate investments.

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Definitions:

Accounting Profit

The difference between total revenue and explicit costs of a business.

Economic Profit

The profit a company makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of its resources.

Implicit Costs

The opportunity costs of using resources that are owned by the firm or entrepreneur for one purpose instead of another, not directly paid out in cash.

Entrepreneur's Talent

is the unique skill set, creativity, and capacity to innovate and take risks that an entrepreneur brings to the economic table, instrumental in starting and growing businesses.