Using Managerial Accounting in Your Business
In This Chapter
Understanding the different kinds of businesses
Knowing what profits are and how to measure them
Utilizing assets efficiently and productively
Examining return on assets
There are many ways to build a business fortune. Starting with a single ferry boat, Cornelius Vanderbilt created a railroad empire. The Rockefellers built their fortune on oil and then banking. Steven Spielberg made movies. Mark Zuckerberg developed Facebook.
Now think about a few ways to lose a business fortune. Horace A. Tabor started off alongside Cornelius Vanderbilt, eventually owning millions in silver mines. With uncontrolled spending and a multitude of personal challenges, though, Tabor lost all his holdings and wound up working as a postal clerk. After gambling that the Great Depression would feed greater demand for lavish Broadway musicals, flamboyant Broadway producer Florenz Ziegfeld forfeited his fortune and died penniless. Woolworth heiress Barbara Hutton’s fortune disappeared with alcohol, drugs, seven husbands, and out-of-control ...