Geometric genetic economy theory
Seven genes are divided into four main groups as follows:
First: For income statement that contains on two groups as follows:
1- Group of revenues
2- Group of costs
Secondly: For balance sheet which contains two sets as follows:
1- Group of total assets (fixed and current assets)
2- Group of liabilities
And thus form of the triangle is expressing the income statement where:
(A) The first rib from the triangle is revenue
(B) The second rib from the triangle is cost
(C) The third rib from the triangle is evaluation standard
(D) The first angle from the triangle is profit case
(E) The second angle from the triangle is equality case
(H) The third angle from the triangle is losses case
And thus form of the triangle is expressing the balance sheet where:
(A) The first rib from the triangle is assets
(B) The second rib from the triangle is liabilities
(C) The third rib from the triangle is evaluation standard
(D) The first angle from the triangle is profit case
(E) The second angle from the triangle is equality case
(H) The third angle from the triangle is losses case
Operative of the genetic economy theory
1- Evaluation standard is a tool to measure the components of the income
statement (revenues - costs - as a result of activity)
2- Evaluation standard is a tool to measure the components of the balance
sheet (assets - liabilities - as a result of activity)
The genetic economy theory had used the elements of the triangle to express
on elements of the income statement as following:
1- The revenues
2- The costs
3- Result of activity (profit - equality - losses)
4- Evaluation standard
(In the same way we will use the shape of the triangle to express on the
balance sheet)
The first conclusion:
If you give the value of two ribs in the previous triangle, the theory will give you
the value of third rib and value of the angled that indicates to the result of the
activity as proof
The first conclusion possibilities
The first possibility: If given the revenues and costs as givens (the first and second rib)
The theory will give you the evaluation standard (the third rib)
and result of activity (it is one of the angle of the triangle)
This link explains this possibility
(When the revenues and costs are givens of the theory)
The second possibility: If given the revenues and standard evaluation as givens
(the first and third rib). The theory will give you the costs
(the second rib) and result of activity (it is one of the angle
of the triangle)
This link explains this possibility
(When the revenues and evaluation standard are givens of the theory)
The third possibility: If given the costs and standard evaluation as givens
(the second and third rib). The theory will give you the
revenue (the first rib) and result of activity (it is one of the
angle of the triangle)
This link explains this possibility
(When the costs and evaluation standard are givens of the theory)
The second conclusion:
If you give the value of one rib in the previous triangle and value of one angle in
the previous triangle (whether the profit or losses or equality), The theory will give
you the values of two ribs as proof
The second conclusion possibilities
The fourth possibility: If given the theory the revenues ( the value of one rib )
and the result of activity (which is one of the angle of the triangle)
as givens. The theory will give you the evaluation standard
(the third rib) and costs (the second rib)
This link explains this possibility
(When the revenues and result of activity are givens of the theory)
The fifth possibility: If given the theory the costs (the value of one rib) and the result
of activity (which is one of the angles of the triangle) as givens.
The theory will give you the evaluation standard (the third rib)
and revenues (the first rib)
This link explains this possibility
(When the costs and result of activity are givens of the theory)
The sixth possibility: If given the theory the evaluation standard (the value of one rib)
and the result of activity (which is one of the angles of the triangle)
as givens. The theory will give you the costs (the second rib) and
revenues (the first rib)
This link explains this possibility
(When the evaluation standard and result of activity are givens of the theory)
The following table summarizes the theoretical possibilities
possibilities |
givens |
proof |
||
1 |
revenues |
costs |
evaluation standard |
result of activity |
2 |
revenues |
evaluation standard |
costs |
result of activity |
3 |
costs |
evaluation standard |
revenues |
result of activity |
4 |
result of activity |
revenues |
costs |
evaluation standard |
5 |
result of activity |
costs |
revenues |
evaluation standard |
6 |
result of activity |
evaluation standard |
revenues |
costs |
Below, significances of the geometric theory outputs
(Evaluation standard significances)
Cases of company results |
degrees of evaluation standard significances |
1- Profit case |
In this case, the degrees of evaluation standard are positive correct numbers or positive correct numbers that include fractures and divided to: From 1 to 2 degrees indicate to excellent degree of profit From 2 to 4 degrees indicate to very good degree of profit From 4 to 7 degrees indicate to good degree of profit From 7 to 12 degrees indicate to acceptable degree From 12 to 50 degrees indicate to poor degree From 50 to infinity indicate to very poor degree of profit
|
2- Equality case |
In this case, the degree of evaluation standard is not knowledge to any value. it is equal to infinity |
3-1 Losses case: When the revenues is greater than the average costs and less than the total costs |
In this case, the degrees of evaluation standard are negative correct numbers or negative correct numbers that include fractures |
3-2 Losses case: When the revenues is equal to the average costs |
In this case, the degree of evaluation standard equal to zero |
3-3 Losses case: When the revenues is less than the average costs |
In this case the degrees of evaluation standard are positive decimal numbers only |
Relationship significances of evaluation standard degrees with the seven genes
and the relationship of genes with each other
(Microeconomic level) or companies
First: For the efficiency of product gene
We will know the ability of a product unit and the extent of its contribution to
cover administrative expenses and the credit for achieving the net profit on the
company's capital
Second: For gene of activity:
We will know is there extravagance in general and administrative expenses
include depreciation or not (when it is compared with the degree of product
evaluation standard)
Third: For gene of credit cost (debit interest)
We will know the extent of impact of the debit interest on product costs and
whether the company's management is unable to cover the debit interest value
or not (when it is compared with the degree of evaluation standard to gene
of activity)
Fourth: For external revenue gene:
We will know the extent of the influence of external revenue to improve as a
result of the income statement (when it is compared with the degree of evaluation
standard to gene of debit interest)
Fifth: For the company management efficiency to manage the main activity:
We will know the efficiency of the company's administrators to manage the
main activity of the company
Sixth: For the company management efficiency to manage the main activity
including the value of credit facilities:
We will know the efficiency of the company's administrators to manage
the main activity of the company in addition to the value of credit facilities
(when it is compared with the degree of efficiency of the main activity
management)
Seventh: For gene of management efficiency of all the resources available
in the company
We will know the efficiency of the company's administrators in the management
of all the resources available in the company (when it is compared with the
degree of efficiency of the main activity management including the value of
credit facilities)
Very important note:
When we used the geometric theory in the science of genetic economy where
we can give the proof to reach to required results (through the choice of
certain degree to valuation standard which gives the required results) and this
is what has already been where enabled us this theory to work of all budgets
(all kinds of budgets) which gives the desired results in their application in
order to treat of any failure occurs in those companies.
Relationship significances of evaluation standard degrees with the genes
and the relationship of genes with each other
(Macroeconomic level) or sectors of the state
First: for gene of the product efficiency
When we know the degree of evaluation that concerns to specific sector.
We will know the ability of products of this sector in the implementation
of financial policy on this sector, how?
If the evaluation degree indicates to excellent or very good, it means that
the products of this sector can bear the prevailing customs duties and tax
in the country and we can use the progressive tax in the case of a monopoly
of the necessary goods to the people and vice versa we can reduce the
custom duties and tax to encourage the companies to continuation and we
can grant the support to companies that produce products essential for people
Second: For cost of credit gene (debit interest)
When we know the degree of evaluation that concerns to specific sector.
We will know the debt interest impact of this sector in the implementation
of monetary policy on this sector, how?
If the evaluation degree to debit interest indicates to excellent or very good,
it means that this sector can bear the prevailing interest rate and exchange rate
in the country and vice versa if the companies in this sector do not achieve
evaluation degree to debit interest indicates to excellent or very good we can
reduce the interest rate and exchange rate in order to work on the revitalization
and continuity in the markets
Third: For the sector management efficiency to manage the main activity
including the value of credit facilities:
When we know the degree of evaluation of the sector management efficiency
in management the main activity including the value of credit facilities.
We will know the extent of the needs of this sector to activate the market
as well as the investment attraction to this sector or not. How?
In the case of achieving the sector to the degree of efficiency (excellent or
very good) this indicate to that the number of working capital turnover for
this sector is large suggesting that the products of this sector find buyers
which return with profit on the companies in this sector (this sector is energetic)
and at the same while these profits work to attract investment in this sector
and vice versa in other companies that need from those responsible for the
management of this sector to activate it by increasing the purchasing power
of the members of the community or work on the export of products of
this sector through the conclusion of international agreements and attract the
funds to the sector if this sector produces essential goods and services to
the community with giving some incentives to those funds
Relationship significances of evaluation standard degrees with the genes
and the relationship of genes with each other
(Macroeconomic level) or evaluation of the state
First: For the state management efficiency to manage the main activity
including the value of credit facilities:
When we know the degree of evaluation of the state management efficiency
in management the main activity including the value of credit facilities.
We will know the extent of state's success in managing the working capital
turnover which concerns with the economic resources that are used in the
state and therefore the purchasing power. How?
In the case of achieving the degree of efficiency is (excellent or very good) by
the state this indicates that the number of working capital turnover of the State
is large, suggesting that the products of this state find buyers. these profit will
go to both the companies and the State in the form of fees and taxes on those
profits (this means that at the same time that the purchasing power of the
members of this community is excellent, provided that there is a law that sets
minimum wages until there is the equitable distribution of profits among the
owners of capital and employees of those companies) and vice versa if
the state did not achieve the degree of excellent or very good. This indicates
that weak purchasing power in the state so the state must resort to invest
in pioneer companies to achieve additional revenues. these revenues do not
bear its burden the companies or the citizen (the pioneer companies are
companies that achieve profits more than banks' profits where they achieve
degree of efficiency to manage the main activity including the value of credit
facilities is excellent or very good or good) these additional profits will use
by the state for:
1- Support of goods and products and the poor to increase the purchasing
power for their
2- Supporting scientific research
3- Create new projects to eliminate unemployment