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Net profit remain at producer’s (entrepreneur’s or entrepreneurs’) disposal, they
are free in using it. It is used for creation and improvement of life; are directed to
organization of extended reproduction; are used for charity; are directed to saving (by
deposit in banks, giving loan, and etc.).
3-7-3. Effectiveness in agriculture and its computation method
Effectiveness is notion used for evaluation of the final result of any activity.
Effectiveness is the result of the achieving of aim. Effectiveness is the criterion used for
evaluation of the achieving of the aim. Effectiveness is such elastic (changeable)
econimic nition that it may be used as an criterion evaluating results on the solution of
different task.
There are some kinds of effectiveness general used: economic, social, public and
private effectiveness.
Economic effectiveness is defined in the result of the production process. Saying
about economic effectiveness, economists as a rule characterize its as the ration of got
result to costs.
Economic effectiveness is the general result formed under the influence of the
results of many effective activities. Its level are affected by effective using of present
reserves, effective using of the produced output, availability of the favorable market
relations, feature of the change of the producer and consumer prices, quality of the
production and other factors.
To characterize effectiveness of the production process in agriculture the
following forms of its are used:
a- effectiveness of the using of the land;
b- effectiveness of the using of the labor (labor force);
c- effectiveness of the using of the capital;
d- general economic effectiveness, and etc.
Effectiveness of the using of the land is characterized by the following indicators:
a. value of output per conditional unit (1, 10, 100 ha) or new generated (added)
value;
b. amount of costs per conditional unit;
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