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This 10-page paper looks at how the KAM can have a fundamental effect upon the profit made by both his Company and his major customers by examining how money works in a business.
The key to understanding how money works in a business, both that of a Company and its customers, is to examine the profit made on the money put at risk i.e. putting €100 on deposit in a bank for a year produces €10 (10%) interest (or profit) on the money deposited. In the same way, the owner puts money into the business and expects to make profit on that money.
Because of the risk of investing in premises, stock etc., the owner obviously expects to make more than he would by placing the same amount of money (risk-free) in a bank. He would expect, therefore, to make 15% to 25% per annum on his business investment to compensate him for that risk. The businessman’s reward is called Return on Capital Employed.
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NOTE: Following payment, this product will be made available on the Kamcity Shop site for immediate download.
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