LOSS OF PUBLIC SECTOR
Causes for loss of public enterprise
What is enterprise ?
The term “enterprise” has two common meanings:
Firstly, an enterprise is simply another name for a business. we often come across this word when reading about start-ups and other businesses…“Simon Cowell’s enterprise” or “Michelle set up her successful enterprise after leaving teaching” etc.
Secondly, and perhaps more importantly, the word enterprise describes the actions of someone who shows some initiative by taking a risk by setting up, investing in and running a business.
The two key words above are initiative and risk.
A person who takes the initiative is someone who “makes things happen”. He or she tends to be decisive. A business opportunity is identified and the person does something about it. Showing initiative is about taking decisions .
Risk-taking is slightly different. In business there is no such thing as a “sure fire bet”. All business investments carry an element of risk – which is the chance or probability that things will go wrong. At the worst, the risk of an enterprise might mean the person making the investment loses all his/her money or becomes personally liable for the debts of the business. The trick is to take calculated risks, and to ensure that the likely returns from taking a risk are enough to make the gamble worthwhile. Someone who shows enterprise is an “entrepreneur”.
Terms related to enterprise: o Enterprise value [EV]
A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
Enterprise value = common equity at market value (this line item is also known as "market cap")
+ preferred equity at market value
+ minority interest at market value, if any
+ debt at market value (here debt refers to interest-bearing liabilities, both long-term and short-term)
+ unfunded pension
What is enterprise ?
The term “enterprise” has two common meanings:
Firstly, an enterprise is simply another name for a business. we often come across this word when reading about start-ups and other businesses…“Simon Cowell’s enterprise” or “Michelle set up her successful enterprise after leaving teaching” etc.
Secondly, and perhaps more importantly, the word enterprise describes the actions of someone who shows some initiative by taking a risk by setting up, investing in and running a business.
The two key words above are initiative and risk.
A person who takes the initiative is someone who “makes things happen”. He or she tends to be decisive. A business opportunity is identified and the person does something about it. Showing initiative is about taking decisions .
Risk-taking is slightly different. In business there is no such thing as a “sure fire bet”. All business investments carry an element of risk – which is the chance or probability that things will go wrong. At the worst, the risk of an enterprise might mean the person making the investment loses all his/her money or becomes personally liable for the debts of the business. The trick is to take calculated risks, and to ensure that the likely returns from taking a risk are enough to make the gamble worthwhile. Someone who shows enterprise is an “entrepreneur”.
Terms related to enterprise: o Enterprise value [EV]
A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
Enterprise value = common equity at market value (this line item is also known as "market cap")
+ preferred equity at market value
+ minority interest at market value, if any
+ debt at market value (here debt refers to interest-bearing liabilities, both long-term and short-term)
+ unfunded pension