Author Archives: Raffaele Felaco

Break-even analysis entails calculating and examining the margin of safety for an entity based on the revenues collected and associated costs. In other words, the analysis shows how many sales it takes to pay for the cost of doing business. Analyzing different price levels relating to various levels of demand, the break-even analysis determines whatContinue reading “What Is a Break-Even Analysis?”

What is productivity. Simply put, productivity measures the amount of value created for each hour that is worked in a society. Focus up: you probably know that the amount of work you can get done in one day is your rate of productivity. Productivity in economics is pretty much the same as productivity at yourContinue reading “What is productivity”

What Is Absolute Advantage? Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantityContinue reading “What Is Absolute Advantage?”

Valuing a Company: Business Valuation Defined With 6 Methods What Is a Business Valuation? A business valuation, also known as a company valuation, is the process of determining the economic value of a business. During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departmentsContinue reading “What Is a Business Valuation?”