The goal of most investors is to maximize their wealth by making intelligent investment
decisions.
The investment decisions are in terms of return and risk.
Return; Returns are the fundamental measure of Investment performance which is measured in
terms of profit and capital appreciation. In real estate finance returns are in the following components;
-Rental income
-Capital appreciation
-Opportunity costs
Measurement of Return;Profit + capital appreciation i.e. using the Holding period yield
Risk;Investment risk can be defined as the possibility that future cash flows and therefore returns and values will be different from what was expected when the investment was undertaken.
A risk refers to the probability of earning a return greater or less than the expected return.
Probability distributions provide the foundation for risk measurement since probability distribution defines the likelihood of certain events occurring.
The greater the risk, the greater must be the potential compensation.
Saturday, August 20, 2011
Thursday, August 11, 2011
Inherent Strategies Of Small Business
Small firms are more geared towards developing an entrepreneurial spirit (Character of the entrepreneur) is key in the development and success of the small enterprises.
In most large firms the face of the entrepreneur keeps disappearing into policies, procedures, systems and this way the employees may loose the vision and objectives of the firm.
The face of an entrepreneur CEO must keep on being seen by employees and management in order to be accountable for the operations and to accomplish the objectives
Making an organisation social-economic venture
Where employees can meet their emotional needs. Small business are good in this because of small no of people in the enterprise. This enhances motivation, team spirit . In large organisation one the major challenges is the social distance that employees may have between them and their managers.
These inhibitions may turn to be a vice in achieving the objectives of organisations. Employees closeness to their entrepreneurial boss is an advantage because he is their role model, and they learn fast than where there are social distances,
In industrial relations :
Small firms have learnt to mange people in simple ways in order to avoid industrial strives and complex industrial cases. This they do by either employing on commission or casual or contract basis.
In most large firms the face of the entrepreneur keeps disappearing into policies, procedures, systems and this way the employees may loose the vision and objectives of the firm.
The face of an entrepreneur CEO must keep on being seen by employees and management in order to be accountable for the operations and to accomplish the objectives
Making an organisation social-economic venture
Where employees can meet their emotional needs. Small business are good in this because of small no of people in the enterprise. This enhances motivation, team spirit . In large organisation one the major challenges is the social distance that employees may have between them and their managers.
These inhibitions may turn to be a vice in achieving the objectives of organisations. Employees closeness to their entrepreneurial boss is an advantage because he is their role model, and they learn fast than where there are social distances,
In industrial relations :
Small firms have learnt to mange people in simple ways in order to avoid industrial strives and complex industrial cases. This they do by either employing on commission or casual or contract basis.
Wednesday, August 10, 2011
Here Are Inherent Advantages And Strategies Of Small Ventures
Here Are Inherent Advantages And Strategies Of Small Ventures that you should know about;
1) Functions as small units
Large firms have learnt there is an advantage of breaking the entire unit into small units for purposes of efficiency.
In small firm’s smallness bring efficiency in decision making process, closes monitoring of transactions, and reduces the complexity of processes. Small units of management may be done in building small business units in different locations, separating operations into products, or limited line of products etc. This has lately been borrowed by large enterprises.
2) Adopting internal changes in small doses:
Due to fear of the unknown, small fires adopt changes very gradually, e.g. introduction of new products or technology until they are sure the operations not affected by the new changes.
Large firms on the hand like making drastic changes internally, while they have the capacity some changes may be too drastic affecting even the most key staff, thereby making the enterprise go down. Introducing change in doses could work well for big enterprises while keeping in line with the objectives.
1) Functions as small units
Large firms have learnt there is an advantage of breaking the entire unit into small units for purposes of efficiency.
In small firm’s smallness bring efficiency in decision making process, closes monitoring of transactions, and reduces the complexity of processes. Small units of management may be done in building small business units in different locations, separating operations into products, or limited line of products etc. This has lately been borrowed by large enterprises.
2) Adopting internal changes in small doses:
Due to fear of the unknown, small fires adopt changes very gradually, e.g. introduction of new products or technology until they are sure the operations not affected by the new changes.
Large firms on the hand like making drastic changes internally, while they have the capacity some changes may be too drastic affecting even the most key staff, thereby making the enterprise go down. Introducing change in doses could work well for big enterprises while keeping in line with the objectives.
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