The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk

The establishing by any company, depending on the domain of activity, of anminimumobjective to be attained, so that the business should become profitable, is the aim principle of thisarticle. In order to attain this goal, the assumed risk is considered, which implies the use of certainassessing inst...

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Main Author: Nicoleta Constandache
Format: Article
Language:English
Published: Danubius University 2011-12-01
Series:Acta Universitatis Danubius: Oeconomica
Subjects:
Online Access:http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1341/1177
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spelling doaj-8195fe4d8b084cb7a2008f3e4f8fb3662020-11-24T23:24:27ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2011-12-01762033The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial RiskNicoleta ConstandacheThe establishing by any company, depending on the domain of activity, of anminimumobjective to be attained, so that the business should become profitable, is the aim principle of thisarticle. In order to attain this goal, the assumed risk is considered, which implies the use of certainassessing instruments, as the break-evenpoint and the leverage effect. This approach stands for asignificant step in making strategic decisions, being a way to evaluating company security in case inwhich market conditions become unfavourable.http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1341/1177decisionreturnbenefitlossfinancial forecastingrisk
collection DOAJ
language English
format Article
sources DOAJ
author Nicoleta Constandache
spellingShingle Nicoleta Constandache
The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
Acta Universitatis Danubius: Oeconomica
decision
return
benefit
loss
financial forecasting
risk
author_facet Nicoleta Constandache
author_sort Nicoleta Constandache
title The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
title_short The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
title_full The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
title_fullStr The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
title_full_unstemmed The Break - Even Point and the Leverage Effect – Instruments for Assessing the Economic and Financial Risk
title_sort break - even point and the leverage effect – instruments for assessing the economic and financial risk
publisher Danubius University
series Acta Universitatis Danubius: Oeconomica
issn 2065-0175
2067-340X
publishDate 2011-12-01
description The establishing by any company, depending on the domain of activity, of anminimumobjective to be attained, so that the business should become profitable, is the aim principle of thisarticle. In order to attain this goal, the assumed risk is considered, which implies the use of certainassessing instruments, as the break-evenpoint and the leverage effect. This approach stands for asignificant step in making strategic decisions, being a way to evaluating company security in case inwhich market conditions become unfavourable.
topic decision
return
benefit
loss
financial forecasting
risk
url http://journals.univ-danubius.ro/index.php/oeconomica/article/view/1341/1177
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