Productive Opportunity Essay

Published: 2020-04-22 08:25:15
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Category: Economics

Type of paper: Essay

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Productive opportunities depends on multiple things, the advancement of technology, the availability and access to resources, and also what producers and entrepreneurs can think of at the given time. Choosing a combination of productive and financial opportunities help maximize wealth. They key in finding a productive opportunity is a high degree of awareness of the factors that distort judgment A perfect capital market is when buying and selling do not affect prices. In a perfect capital market the corporation is regarded only as a means of generating wealth, because the present value of the dollar returns it generates is the only feature relevant to its owners.

Understanding your resource, resources is a source or supply from which an organization gains profit. Typically resources are materials or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. From a human perspective a natural resource is anything obtained from the environment to satisfy human needs and wants. Organizations operate by people making decisions. A manager plans and organizes a team by executing decisions.

The effectiveness and quality of those decisions determines how successful a manager is. With this being said the goal of the manager and owner remain the same as long as market value is maximized. Opportunity is all around us but yet at the same time sometimes we never see it. In business we look for new ways to market our business, reach our target market, build on online community and through this all we overlook the opportunity that is all around us. We are learning to create opportunity my maximizing our market value.

In conclusion, in a perfect capital market, the market value of the firm is determined only by the cash flows it can generate and not by the source of funds used to finance those operations. The task of management is to create wealth by finding productive opportunities with average rates of return exceeding the market rate of interest.

Fabozzi, Frank J. (2011-12-01). Financial Economics (Page 46). Wiley. Kindle Edition.

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