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+--- Thread: Please tell me What does mean Market value? (/thread-117805.html)
Please tell me What does mean Market value? - so.moon - 03-24-2014 11:35 AM
I understand different meanings of market value, but I want to know its meaning in contrast to social value: "For private organizations the desired result is creation of market value but for public organizations it is creation of social value".
- Uki - 03-24-2014 11:41 AM
Ehm, it means that a private organizations would create some sort of a base price, or a minimum price for people to pay for their products or service. While public organizations would create an increase in society such as health, politics, etc, regardless on how much people can afford for such products/services.
- wow_bill - 03-24-2014 11:50 AM
In the context you have given, the term MARKET VALUE is contrasted with SOCIAL VALUE. In this context, "the creation of MARKET VALUE" refers to MONETARY VALUE.
The desired result of private organizations (businesses) is to generate income and improve the MONETARY VALUE of the business. In contrast, the desired result for public organizations is SOCIAL VALUE or a benefit to the community that improves the QUALITY OF LIFE apart from a monetary return. People invest their money in businesses to earn a monetary return on their investment. People invest their money (i.e. pay taxes or make donations) in public organizations to improve the quality of life (i.e. to have beautiful, orderly, clean, healthy, peaceful, safe, fun communities) instead of expecting a monetary return on their investment.