In the by the last few years trade unions, left parties and the media always polemical campaign against the voluntary, democratic cooperation of the people (usually referred to as a market economy or capitalism as a pejorative), became, unfortunately, the denigration of corporate profits is becoming increasingly important. Most is now spoken by excessive return expectations, profit maximization or the lack of culture of shareholder value. In fact, the profit but the most important characteristic of the operating account, because it seeks to demonstrate, has correctly whether and to what extent the business of production factors and its products, the actual demand served or produced by the market.
After the collapse of real existing Socialism in Eastern and Central Europe is already about 20 years back, it seems that the massive problems of non-owner-managed and non-profit making, not profitable "socially owned" companies today to be forgotten. Are different today, especially at the local level increasingly vocal demands, companies should be nationalized or continue to operate through the public sector do not explain. Apparently not privately owned companies have greater financial flexibility and could offer their customers and employees more because they have to bring to the shareholders to profit.
Requiring the contractor, to give up profits, the recommendation is similar to a captain, his ship was to stand without a compass and maps in the lake. These and similar views also ignore the real, social, that is of general interest related tasks of company. Real corporate activity is to decide to use scarce resources in a certain way, so as to produce a particular product.
are now unfortunately "Manager" incorrectly as the epitome of the entrepreneur. Managers are but mere employees in management positions. It is the entrepreneurs, so the owners, who have the risk of loss and bankruptcy. Only the
hopefully adjusting the gain shows Entrepreneur if he has scarce resources (production factors) are used correctly. The success of the entrepreneur ultimately decide to consumers, give to understand with their equivalent in money value the business estimate for the value they actually hold the product. The higher the income, the greater was the service of the entrepreneur to his fellow man, to the consumers.
If not set a profit, but only losses, this is the signal to the contractor that he has made mistakes. He has produced such products, which no one takes on its market (eg refrigerators at the North Pole or not government-subsidized solar panels in rainy Germany). In the worst case, these errors lead to corporate bankruptcies, but as the winner also an important function. An economic system in which one fears bankruptcies and spares no expense to prevent it offers no fertile ground for entrepreneurs and consumers, but also endangers the long-term optimal supply of goods. Also, the bankruptcy is an important indicator of the economy. Disable this lesson, as in the former Soviet bloc produced where hundreds of thousands of unprofitable state enterprises to unrealistic prices actually unsaleable products, errors can not be fixed so that scarce economic resources, ie capital and labor are wasted.
The function of the entrepreneur, for profit, is to anticipate what people might need it tomorrow and make provisions that are available on time. Should be dropped from the profitability, companies can make no more right decisions. They come from as the ship without a compass on the right track so that the national economy more than offset capital built up. Such a society living in this country as identifiable only by the substance.
After the collapse of real existing Socialism in Eastern and Central Europe is already about 20 years back, it seems that the massive problems of non-owner-managed and non-profit making, not profitable "socially owned" companies today to be forgotten. Are different today, especially at the local level increasingly vocal demands, companies should be nationalized or continue to operate through the public sector do not explain. Apparently not privately owned companies have greater financial flexibility and could offer their customers and employees more because they have to bring to the shareholders to profit.
Requiring the contractor, to give up profits, the recommendation is similar to a captain, his ship was to stand without a compass and maps in the lake. These and similar views also ignore the real, social, that is of general interest related tasks of company. Real corporate activity is to decide to use scarce resources in a certain way, so as to produce a particular product.
are now unfortunately "Manager" incorrectly as the epitome of the entrepreneur. Managers are but mere employees in management positions. It is the entrepreneurs, so the owners, who have the risk of loss and bankruptcy. Only the
hopefully adjusting the gain shows Entrepreneur if he has scarce resources (production factors) are used correctly. The success of the entrepreneur ultimately decide to consumers, give to understand with their equivalent in money value the business estimate for the value they actually hold the product. The higher the income, the greater was the service of the entrepreneur to his fellow man, to the consumers.
If not set a profit, but only losses, this is the signal to the contractor that he has made mistakes. He has produced such products, which no one takes on its market (eg refrigerators at the North Pole or not government-subsidized solar panels in rainy Germany). In the worst case, these errors lead to corporate bankruptcies, but as the winner also an important function. An economic system in which one fears bankruptcies and spares no expense to prevent it offers no fertile ground for entrepreneurs and consumers, but also endangers the long-term optimal supply of goods. Also, the bankruptcy is an important indicator of the economy. Disable this lesson, as in the former Soviet bloc produced where hundreds of thousands of unprofitable state enterprises to unrealistic prices actually unsaleable products, errors can not be fixed so that scarce economic resources, ie capital and labor are wasted.
The function of the entrepreneur, for profit, is to anticipate what people might need it tomorrow and make provisions that are available on time. Should be dropped from the profitability, companies can make no more right decisions. They come from as the ship without a compass on the right track so that the national economy more than offset capital built up. Such a society living in this country as identifiable only by the substance.
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