Above-average Returns in Organization
QUESTION :
Examine your current organisation (or previously employed organisation) and answer the following question:
- What are your organisation’s above-average returns? Justify your answer.
Guidelines given:
Above-average returns represent returns that exceed the investors’ expectation to earn from other investments with similar level of risks. These risks refer to an investor’s uncertainty about economic gains or losses that will result from particular investment (Ireland et al. 2011). In other words, above-average returns are returns that exceed investors’ expected levels of return for a given risk level. In general, returns can be measured in terms of:
- Accounting figures, such as return on assets, return on equity, or return on sales.
- Basis of stock market returns, such as monthly returns.
- Amount and speed of growth, e.g., annual sales growth and capital growth.
Profit, as shown in the financial reports.
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