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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.
Stephen Hecht, grandson of Marcus Hecht, the founder of Classy Formal Wear and now executive vice president and chief operating officer of the firm, was considering how his new lin
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