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In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. [1] [better source needed]
Three different approaches are commonly used in business valuation: the income approach, the asset-based approach, and the market approach. [7] Within each of these approaches, there are various techniques for determining the value of a business using the definition of value appropriate for the appraisal assignment. Generally,
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), Gross national income (GNI), net national income (NNI), and adjusted national income (NNI adjusted for natural resource depletion – also called as NNI at factor cost).
The income approach is a real estate appraisal valuation method. It is one of three major groups of methodologies, called valuation approaches , used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal.
We assume that there are two goods in an economy:the first one is a "public good", and the second is "everything else". The price of the public good can be assumed to be P public and the price of everything else can be P else. Person 1 will choose his bundle such that: α*P (public) /P (else) = MRS (person1)
A net (sometimes written nett) value is the resultant amount after accounting for the sum or difference of two or more variables. In economics , it is frequently used to imply the remaining value after accounting for a specific, commonly understood deduction.
A good may be a Giffen good at the individual level but not at the aggregate level (or vice-versa). As shown by Hildenbrand's model, aggregate demand will not necessarily exhibit any Giffen behavior even when we assume the same preferences for each consumer, whose nominal wealth is uniformly distributed on an interval containing zero.
If the good is a Giffen good, the income effect is so strong that the Marshallian quantity demanded rises when the price rises. The Hicksian demand function isolates the substitution effect by supposing the consumer is compensated with exactly enough extra income after the price rise to purchase some bundle on the same indifference curve. [2 ...