In this statement, the author raises a problem related to entrepreneurial activity. J. Rockefeller also argues that large expenses should not cause concern, but only small incomes should be feared - it is because of them that the entrepreneur loses profit.
As you know, entrepreneurial activity is one of the factors of production, and factors of production are resources that are used by people to produce economic benefits. Income is the aggregate of cash and natural resources for a certain period of time. If an entrepreneur has small incomes, as J. Rockefeller says, then the entrepreneur will "burn out", because he will not be able to recoup his production. The goal of any entrepreneur is profit - the positive difference between the entrepreneur's income and expenses.
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Cost-resource size Money used for a certain period of time. Rockefeller's words that there is no need to be afraid of high costs can be translated as follows: the more resources you spend on the production of your own products, the more products you produce, therefore, the more profit you get.
The income received is divided into two parts - real and nominal. Real income is the amount of goods and services that can be purchased with the income earned. Nominal income is the amount of money received by a person for a certain period of time. Costs, in turn, are divided into fixed and variable. There are also ways to calculate the profitability of an enterprise headed by an entrepreneur. If the income of the enterprise exceeds the expenses, then the enterprise is profitable, if, on the contrary, it is not. The case when incomes are equal to expenses also does not suit the entrepreneur, because in this case he is without profit.
Thus, the only motive for an entrepreneur's activity is to make a profit, and the more income, the better for him.
Let's look at an example from the literature. In Margaret Mitchell's novel Gone with the Wind, the main character, Scarlett, vowed to herself that she would never starve. Scarlett bought out sawmills, and began to earn money as a business - she went to clients, intrigued competitors. Scarlett was well aware of the meaning of the words "fear small incomes." She sold her forest at any cost, if only the demand of buyers
passed to her, and she was able to receive a fixed profit. Thus, in most cases, entrepreneurs will stop at nothing to get their profits.
Let's take an example from cinema. In the film by David Fincher " Social network»Tells how the average teenager Mark Zuckerberg managed to found the most famous network in the world, which brings him billions of dollars in annual income. Mark skillfully used his entrepreneurial skills to maximize his income. Thus, entrepreneurial activity is risky, as it can be associated with either a successful investment or complete burnout.
Updated: 2018-03-06
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On March 20, 2017 at the age of 101, David Rockefeller, the legendary shark, died American business.
David Rockefeller is the grandson of the legendary billionaire John Rockefeller, who became the first billionaire in human history.
1. It was my parents who gave me my first insights into the importance of peace outside the United States.
2. Looking back, I see that in life I would not want any other career. Working at the bank gave me the opportunity to meet with the leaders of our world in the field government controlled, finance and business and staying in touch with many of them for four decades - no other conceivable position in any field would have given me that.
3. The law of nature cannot be circumvented, and the sooner you know the truth, the better.
4. The only way to success is to get acquainted with the facts and further work on the basis of these facts.
5. If it were possible to educate people so that they would find help in themselves, we could eliminate at the root many of the hardships of our life.
6. Beginners simply with the intention of getting rich will never achieve anything.
7. Don't be afraid of big expenses, you need to be afraid of small incomes.
8. It is my duty to earn a lot of money, and even more money in order to use the money I earned for the benefit of my compatriots in accordance with the dictates of my conscience.
9. I know of nothing more despicable and pathetic than a person who devotes all his time to making money for the sake of money itself.
10. Friendship based on business is better than business based on friendship.
11. Good governance is to show ordinary people how to make excellent people work.
12. I never knew who I would be in this life, but I always knew that I was born for something more.
13. I don’t think there is another quality that is so necessary for success of any kind, as persistence. Perseverance can overcome everything, even the laws of nature.
14. Through perseverance, anything, right or wrong, good or bad, will be achieved.
15. Don't be afraid to give up good for great.
16. I have always tried to turn every disaster into an opportunity.
17. I would rather receive income from 1% of the efforts of a hundred people than from 100% of my own efforts.
18. The ability to deal with people is a commodity that can be bought in the same way as we buy sugar or coffee ... And I will pay for such an ability more than for anything else in the world.
Which quote did you like the most? Let us know in the comments!
Be wise with
The author of this statement argues that one should not be afraid of large investments, one should be afraid of small profits. J. Rockefeller, the famous banker and entrepreneur, raises an important problem - the development of entrepreneurship and the rational distribution of expenses and incomes in this area of activity. This problem is relevant both for our country and for the entire modern world. I agree with the statement of the author.
As you know, entrepreneurial activity is an activity aimed at making a profit from the production and sale of goods, the provision of services. Moreover, profit is a positive difference between expenses and income. Of course, investing large funds in your business is a huge risk, an entrepreneur must "work out" them as best as possible so that there is no negative profit. It is the low income from the enterprise that can become an indicator of unprofitability and lead to its bankruptcy.
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There are many examples in history when high expenses led to the prosperity of an entrepreneur, and subsequently to the prosperity of the country as a whole. In the 17th century, the famous Russian businessman A. Demidov lived in Russia, who was not afraid to invest huge funds in the development of the mining industry in the Urals. The correct distribution of finances allowed him to raise the mining industry in Russia to a new level.
In conditions modern economy Russia also find confirmation of the words of J. Rockefeller. According to media reports, the number of bankrupt enterprises in Russia increased sharply in the 90s. One of the reasons for this process was the catastrophic decrease in expenses for the modernization and development of enterprises, which led to a decrease in profits.
To summarize, I would like to note that the famous banker and billionaire J. Rockefeller is right.
Updated: 2018-02-20
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Motivating quotes from John Rockefeller, the first billionaire in history "> Motivating quotes from John Rockefeller, the first billionaire in history" alt = "(! LANG: Don't be afraid of big expenses, you need to be afraid of small incomes. Motivating quotes from John Rockefeller - the first billionaire in history!}">
On September 29, 1916, John Rockefeller, founder of Standard Oil, was named the world's first dollar billionaire. An entrepreneur whose name is strongly associated with wealth and success is still considered the richest man, who have ever lived on earth, since, in terms of today's exchange rate, his fortune exceeds $ 300 billion. Today Babr shares with his readers some of the rules and principles of life that allowed Rockefeller to achieve such results. These quotes motivate well, especially if you are reading this post on Monday.
I have always tried to turn any disaster into a new opportunity.
There is no need to be afraid of big expenses, you need to be afraid of small incomes.
Whoever works all day has no time to earn money.
Your well-being depends on your own decisions.
It is my duty to earn a lot of money, and even more money in order to use the money I earned for the benefit of my compatriots in accordance with the dictates of my conscience.
If your only goal is to become rich, you will never achieve it.
I know of nothing more despicable and pathetic than a man who devotes all his time to making money for the sake of money itself.
Friendship based on business is better than business based on friendship.
Do you know what gives me the greatest pleasure? See how dividends come from my efforts.
It's not enough just to do the right thing; the most important thing is to let people know that you are doing the right thing.
I would rather hire someone who is enthusiastic than someone who knows everything.
Good management is about showing ordinary people how to get great people to work.
Dealing with people is a commodity that can be bought in the same way we buy sugar or coffee. And I will pay more for such a skill than for anything else in the world.
I don't think there is another quality that is so essential to success of any kind as persistence. Perseverance can overcome everything, even the laws of nature.
Through perseverance, anything, right or wrong, good or bad, will be achieved.
I never knew who I would be in this life, but I always knew that I was born for something more.
Undoubtedly, one cannot but agree with the opinion of Rockefeller. Indeed, the risk and money invested in a particular business are aimed at systematic profit, the amount of which depends on the effort and materials invested. Invest more and get more.
Investing capital with the aim of making a profit, as everyone knows, is called an investment. A successful investment leads to big profits, so it is worth taking risks for the sake of your business. In the case of small investments, the profit will be just as small and will not cause either material or moral satisfaction. If the demand for the company's product or service decreases, together with small investments, this will lead to a crisis and bankruptcy.
Another example is the "Pontiac" car - the car of the American youth. After reducing the cost of manufacturing the car, the company went bankrupt.
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Experts of the site Kritika24.ru
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Thus, it can be concluded that John Davison Rockefeller was absolutely right. Indeed, costs are a must in any entrepreneurial activity and it is on him that the future of the whole company depends
