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In a way, financial accounting—the focus of the first part of this book—attempts to answer this question by determining the accounting result. However, at times, this is not sufficient. Firstly, the annual result can be too limited a measure for the complexity of a business project. In the year 2000, a company like Amazon, which was dedicated to selling books and other items online, had only accumulated losses year after year since the beginning of its activities. Yet, capital markets expressed confidence in it, granting its shares a high value.
THE SCORECARD: THE DUPONT APPROACH
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