There were differences in income between the regions of the world; but as you can see from Figure 1. Nobody thinks the world is flat today, when it comes to income. Countries are arranged according to GDP per capita from the poorest on the left of the diagram Liberiato the richest on the right Singapore. For every country there are ten bars, corresponding to the ten deciles of income.
For example, a [page 1] plaintiff may bring an action alleging damages that have occurred prior to the date of the suit in the form of lost profits.
Alternatively, a plaintiff may allege damages at the time of the suit going forward-in the form of future lost profits, lost goodwill, or loss of business value. Federal and state laws provide different remedies depending on the type of claim brought by a plaintiff.
The type of economic damages alleged loss of profits from specific transactions, loss of business reputation or goodwill value, or the destruction of the business outright will also often dictate which measure of damages is most applicable.
However, in some cases plaintiffs seek both lost profits and loss of business value. The courts have not always clearly, nor consistently, distinguished these two types of remedies and there frequently exists confusion as to whether or not the two damage measures are redundant or overlap one another.
In many cases, both measures of damages are not justified by the type of claim alleged by a plaintiff. This is because the value of a business is ultimately determined by the profits that can be earned by the business.
Lost profits are measured over a specific time period whereas the value of a business, in principle, represents the value of all future expected profits to be earned over the life of a business. These two measures of damages can overlap and great care must be exercised when both measures are used simultaneously perhaps additively in a damage calculation.
Ultimately, the question of which measure is the most appropriate will usually depend on the applicable law of a specific jurisdiction and the circumstances of each case.
The purpose of this article is to distinguish between the measurement Business articles term paper for econ damages as lost profits versus damages as loss of business value. Finally, the article suggests methods of properly utilizing both damage measures without redundancy. Demonstrating Business Damages Actual or compensatory damages are those damages sustained by a plaintiff as a direct result of the defendant's conduct.
These damages can include out of pocket losses as well as lost profits or loss of business value. At least two primary requirements must be met in order to bring a damage claim. First, the alleged wrongful conduct of the defendant must be the legal or "proximate" cause of the damages.
Once causation and the existence, or fact, of damages has been established, the amount of damages may be estimated using a variety of methods.
The method of quantifying damages does not necessarily have to be exact. Damage estimates are by their very nature somewhat speculative. Damage analyses are acceptable provided they are not unreasonable and are not founded on conjecture or impermissible speculation.
The basis upon which a damage claim rests must be reasonable, have satisfactory support in the facts and evidence of the case, and be based upon methods which are generally supported by economic or financial theory. Measuring Lost Profit Damages Lost profits represent the difference between what a business would have earned with and without a defendant's allegedly injurious behavior.
If these other factors such as changes in general economic conditions, increased competition, mismanagement of the business, or increased costs are partially accountable for any decreases in the plaintiff's profits, then the effect of these factors must be accounted for and deducted from any calculation of lost profits.
There exist at least three typical methods of calculating lost profit damages. Under this approach, the plaintiff compares the profitability of the plaintiff's business before and after the alleged harmful acts were committed by the defendant.
Some account for future expected growth in the business may be included in this calculation. Under this approach, the plaintiff compares the profitability of the plaintiff's business to a comparable firm or other unharmed location of the plaintiff's business to determine the results which would likely have occurred but for the defendant's actions.
Company or Market Forecast Approach: Under this approach, the plaintiff uses sales projections or forecasts of expected performance for plaintiff's business or the industry to determine the likely results of defendant's harmful actions. Measuring Loss of Business Value Damages On the other hand, if a business is destroyed completely, for example by fire or because a defendant's actions were so harmful that a plaintiff is forced out of business, the damages may be calculated as the value of the business at the time it was destroyed.
This approach is based on the premise that the value of a business enterprise is the present value of the future economic income to be derived by the owners of the business. This approach utilizes the premise that the value of a business enterprise should be determined based on what astute and rational capital market investors would pay to own the stock in the subject company.
Comparative Market Transaction Approach: This approach determines the value of the business by comparing the subject firm to comparable firms that have been bought or sold during a reasonably recent period of time. In calculating loss of business value or lost profits damages, a date or dates must be selected at which to value the damages.
For instance, loss of business value must be calculated as of a particular date. Due to the fact that the value of a business may differ depending on the date of valuation, the amount of loss of business value damages will also be affected.
In the case of lost profits, the date or dates at which damages are [page 5] to be calculated may determine whether or not discounting of lost profits to present value may be required.
If the relevant case law or the court resolves this issue in advance, the damage expert is not required to select the date at which to calculate damages. This, however, is not usually the case.Learn how to start your own photography business in 12 weeks or less with this online class from award-winning photographer, Pye Jirsa.
Watch a free online lesson today. Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small barnweddingvt.com people who create these businesses are called entrepreneurs.
[need quotation to verify]Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit". The failure of Hoover and Siegler to grasp that a number needs a rhetorical standard comes through sharply in the last section of their paper, concerning their online-publication-enabled statistics on the prevalence of this or that scientific practice.
Example Term Paper Format ECON November 19, Abstract The following paper is an example of the appropriate stlyle, layout and format for an term paper or essay in an economics course.
Business Articles- Term Paper for Econ The focus of the paper is on a survey and analysis of macroeconomics and microeconomics-oriented business articles that have been published within the past two months in non-Vietnamese business magazines/journals/websites concerning a non-Vietnamese event.
- Economics for Business The Euro is the common currency of the European Monetary Union (EMU).
The national currencies of the participating countries were .