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The Daily Drucker
book

The Daily Drucker

by Peter F. Drucker
October 2009
Intermediate to advanced
448 pages
8h 21m
English
HarperCollins Publishers
Content preview from The Daily Drucker

Profit is the ultimate test of business performance.

Profit serves three purposes. One is it measures the net effectiveness and soundness of a business’s efforts. Another is the “risk premium” that covers the costs of staying in business—replacement, obsolescence, market risk and uncertainty. Seen from this point of view, there is no such thing as “profit”; there are only “costs of being in business” and “costs of staying in business.” And the task of a business is to provide adequately for these “costs of staying in business” by earning an adequate profit. Finally, profit ensures the supply of future capital for innovation and expansion, either directly, by providing the means of self-financing out of retained ...

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Publisher Resources

ISBN: 9780061802669