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Internal rate of return (IRR) is a method of calculating an investment's rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate ...
The First World War period saw a change of emphasis in economic theory away from industry-level analysis which mainly included analyzing markets to analysis at the level of the firm, as it became increasingly clear that perfect competition was no longer an adequate model of how firms behaved.
In the theory of capital structure, internal financing or self-financing is using its profits or assets of a company or organization as a source of capital to fund a new project or investment. Internal sources of finance contrast with external sources of finance. The main difference between the two is that internal financing refers to the ...
These factors indirectly affect the organization but cannot be controlled by it. One approach could be the PEST analysis, which includes political, economic, social and technological, whereas other variations JIT) include environmental and legal factors.
Economic expansion can be affected by external factors such as technological changes or weather conditions, [7] or by internal factors such as a country's fiscal policy, [8] monetary policy, regulatory policy, [9] interest rates, the availability of credit, or other impacts on producer incentives. Global events, such as pandemics, may also ...
Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets. [1]
The economic concept dates back to Adam Smith and the idea of obtaining larger production returns through the use of division of labor. [2] Diseconomies of scale are the opposite. Economies of scale often have limits, such as passing the optimum design point where costs per additional unit begin to increase.
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilised amounts of the various inputs determine the quantity of output according to the relationship called the production function .