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Problems of profit based measures
- Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed.
- So many different measures of profitability and profit terminology.
- Practical and political problems when addressing 'uncontrollable' expenditure.
Describe the situation facing Mensa at time of the case. This should include major issues facing the company and the decisions that need to be made.
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The long-term cash-making capability of the company
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