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Why Accounting in Business is Important

Strategy Driven

Profitability In business, profitability is defined as the income generated by a company from sales of products or services. Liquid assets are cash, securities, receivables, and other financial assets that can be converted into cash within a short period, like a day or two.

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Collaboration as an Intangible Asset

Harvard Business Review

Interestingly, intangible assets are all the rage these days on Wall Street. Interestingly, intangible assets are all the rage these days on Wall Street. Most intangible assets are real but invisible, and the most important invisible ability is the ability (or, perhaps better said, the probability) to collaborate.

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What VW Didn’t Understand About Trust

Harvard Business Review

Though the story is still developing, there are a few big, interconnected lessons to be drawn from what we know so far. In a strange way, VW’s chicanery only reinforces how important it is for products today to be environmentally safe. In 1975 intangible assets were just 17% of the market value of the S&P 500.

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What Younger Workers Can Learn from Older Workers, and Vice Versa

Harvard Business Review

What we asked people was, at this point in their lives, are they actively building, maintaining, or depleting their tangible and intangible assets? Actively building both tangible and intangible assets is crucial to creating a long and productive working life. How to be financially proficient.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. Many digital companies have no physical products and have no inventory to report.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

We focus on economic profit rather than revenue size, market share, or productivity growth because these other metrics risk including firms that are simply large and may not create economic value. Often when superstar cities fall, they tend to be advanced economy cities, replaced by a developing economy city.

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A Novel Idea for Putting Sidelined Cash to Work

Harvard Business Review

To drive shareholder value and be a catalyst for economic recovery, our nation's largest companies must deploy their assets in a productive manner, either internally for innovation and organic growth, or externally for corporate venture capital investments, research partnerships, joint ventures and alliances, or acquisitions.