I am not going to say that rate of return is a magic wand for every occasion in business. There are times when you have to spend money just to stay in business, regardless of the visible rate of return. Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses… Nevertheless, no other financial principle with which I am acquainted serves better than rate of return as an objective aid to business judgment.
Content: Quotation
Subject: Finance
Subject: Finance
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