Word: expansionism
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Dates: during 1970-1979
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The economy's rate of expansion slipped from a boomy 9.2% in the first quarter to a merely salutary 4.4% in the second. The Commerce Department's June index of leading indicators, the Government's key barometer of future business trends, inched up only .3%, the smallest...
But others, among them IBM's David Grove, a member of TIME Board of Economists, are not completely convinced. In Grove's view, many companies are still operating well below capacity and do not see the need for large amounts of new plant and equipment in the near...
Non-film projects, however, account for three-fourths of Disney revenues and therefore generate the greatest excitement in the Disney organization. With Disneyland and Walt Disney World booming, the company is now moving on the biggest of Walt's ideas: EPCOT, or Experimental Prototype Community of Tomorrow. To be...
As for retained earnings, they are a prime source of the investments in new plant and machinery that increase production, improve product quality and create jobs. Aggressive and innovative companies often retain high percentages of their profits for expansion. One example: Levi Strauss & Co., whose jeans clothe the world. The...
Other companies may choose to borrow the money for expansion. But even then the investment depends on profit, since lenders will not advance expansion funds to a company that has little prospect of earning money. In the long run, an absence of profit means that a company cannot buy the...