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Concept of Performance Between Theory and Practice

Author

Listed:
  • Georgescu Floarea

    (Romanian Academy)

Abstract

Getting profit implies exact knowledge of market trends, pricing, consumer demand and directing cautiously factors of production and marketing. Both profit and profitability (profit rate) reflects the entity's ability to produce income over expenditure incurred. Therefore, profit is the excess of income and capital employed entrepreneur repays work. After influence on economic activity, profit can perform the following functions: stimulate economic initiative; cultivate the spirit of economy and increase the efficiency of economic activity; increase economic incentives in achieving positive financial results; is a synthetic indicator in assessing performance; is an indicator of control regarding the calculation, distribution and taxation. The objective of this paper is to analyze precisely in terms of net profit to be distributed to shareholders for the confidence of investors and fitting them to a level that does not hinder investment firm or increase the tax burden.

Suggested Citation

  • Georgescu Floarea, 2014. "Concept of Performance Between Theory and Practice," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 495-500, May.
    • Handle: RePEc:ovi:oviste:v:xiv:y:2014:i:2:p:495-500
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    File URL: http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/ANALE%20vol%2014%20issue_2_2014.pdf
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    More about this item

    Keywords

    Net profit; cash flow; available cash flow; dividend; shareholders; working capital.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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