ABSTRACT

This chapter discovers that some enterprises are relatively easy and some rather complex to evaluate. This is due to the nature of their economic characteristics. The most important of these are worth noting so that the requisite focus may be placed on identifying the substantive elements of each characteristic which call for special attention on the part of the evaluating agency. A closely related issue which merits the attention of evaluation agencies is the market composition of the enterprise. An enterprise with an italicised characteristic presents greater complexity for evaluation than one without it. The most obvious remit for evaluation is to examine the degree of utilisation of capital in terms of production and/or the input of labour. In countries where capital is relatively scarce and labour is plentiful, and where a significant proportion of capital investment comes from outside, the ratios of capital to output and labour assume particular significance.