Opportunity Loss

Friday, July 30, 2010 0 comments

Akeelah-Dre, a medical transcription company called for a meeting comprising the top management, middle management and production management concerning its plan to invest for additional computer for their newly hired transcriptionists. The computer units will cost $500,000 however, there are still other financial struggles the company is facing which also need an immediate financial action or else the chance of getting a high percentage of bankruptcy will be more awful.

In this scenario, the company is in between two important choices on which should be given more priority though it is clearly stated above that the meeting was called to discuss about the plan to purchase additional computer units for the company's newly hired transcriptionists. Opportunity loss will definitely walk its term when they do not all agree to use half of the full amount intended for investment to purchase additional computer units and use the other half to address another financial struggle that the company is experiencing.

In this case, the best way to get through with what has already been planned at the same time apply solution to the other financial struggle to the company is through purchasing computer units on account. Meaning, the commodity will be paid half of the full price amount and pay the other half through sluggard basis upon agreed period of time.

Opportunity cost refers to an opportunity that a business firm could get when the latter chose to just purchase machinery on account instead of purchasing it in cash. Such opportunity allows a business firm to use the commodity to generate income out of it and use the latter to the pay for the machinery.

Thus, instead of using the allotted budget in full which is intended for a project which will soon be used by the company to increase profitability, the decision maker may just use half of the whole budget and intend it for the project and use the other half perhaps to supplement other financial struggles of the company.

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Characteristics of an Entrepreneur: Perseverance

Saturday, July 10, 2010 0 comments

In the world market, as far as competition is concerned, one of the most important characteristics an entrepreneur has is perseverance. There will be no successful entrepreneurs nowadays, not even a single one if it were not of the word that puts an individual or ordinary person into action to become an entrepreneur which is perseverance.

Like Ben Chan, the owner of Bench, his success in the world market has been an obvious and lucid manifestation that he possesses perseverance. Perseverance does not only contribute to the business alone, but also to some other important aspects of the business such products and services. Ben Chan’s perseverance considering the success of his business (Bench) is undeniably exceptional.

For those individuals who desire to have their own business, it is imperative that the principle of perverance should be properly nourished for like other leading businessmen and market players in the world market, you too can be one successful entrepreneurs as what they are right now. Thus, the secret to having a successful business and to being a businessman, you should be persistent in accomplishing your goals. It has been said, "Entrepreneurship is not for the weak of heart".

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