Introduction
When evaluating Guysuco’s profitability and/or losses as a performance indicator the conclusion reached was that the corporation has been “mired in a sea of losses and indebtedness since the 2000s.” The proposition was therefore advanced that its survival as a sustainable commercial venture rests squarely on its ability to earn regular accounting profits. Failure to achieve this would force it to rely on government handouts, bailouts and other forms of public relief in order to remain in business.
Furthermore, because Guysuco is a state-owned corporation, obtaining an economic profit is also a critical requirement when evaluating its economic efficiency. As was earlier indicated economic profit can only be established after taking into account the opportunity
