Approaches to Evaluation of a Company Owner Investment Efficiency of his Personal Activity towards Business Direction

Abstract

Authors: Dmitry Sergeevich Mamontov - National Research University "Higher School of Economics"

Vitaliy Alfredovich Korolev - National Research University "Higher School of Economics"

The following article is devoted to finding a solution to the problem of efficiency of business owners' activity evaluation.The models described in the article use the indicator of efficiency which was for the first time considered as a basic factor for the owners to make a decision about the form of their following participation in managing the company, and depends not only on real money investments in business, that are easy to measure, but also on the investments of the owner's personal time.The models also provide a rational explanation of owner's decision to give up his function of day-to-day management of the company, which is often observed in practise.Special attention is paid to separation of three basic business owner's functions: entrepreneurial activity, operational management and control under the management team.