Principles Market

A large number of principles does not mean that you can apply them all at once. In each case highlighted the main and auxiliary principles. When it comes to principles, then there are only the basic laws of behavior of the subjects of the market economy. In real life, several factors can distort their actions. For example, government intervention is sometimes distorts the implementation of certain principles evaluation.

Imperfection of market relations, characteristic of phase transition to a market economy, further distorting effect of assessment principles. For these reasons, assessment guidelines reflect a tendency of economic behavior of market entities, and do not guarantee such behavior. However, as development in our country market relations operation of the objective principles of business valuation will increase. Consider the first group Principles. A key criterion for the value of any Property is its usefulness. Business has value only when it can be useful to the real potential owner. Utility for each customer individually, but qualitatively and quantitatively determined by time, space and cost.

However, as the overall usefulness of the object to the owner in a market economy can allocate its capacity to generate income. Utility business – is its ability to generate income in a given place and during that time period. The more useful the higher the value of the appraised value. Continue to learn more with: BlackRock Health Sciences Trust II. The principle of utility is that the more the company is able to meet the needs of the owner, the higher its value. From the perspective of any user of the estimated value of the enterprise should not be above a minimum price for a similar company with the same utility.