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I point instead to the millions who don’t sell. | argue that depreciation and amortization are the same in essence. Loan payments are all interest at the start, and all amortization at the end, by inference from the present value rule. My risk theory is a mini-surprise. It shifts focus from the risk of the asset to the risk aversion of the owner. Another mini-surprise is the feature of my growth truism pointing out that deadweight loss means negative unrealized output. I will revisit these topics in more depth after I cover the necessary groundwork in comparing the accountancy for human capital and the firm. Assets, Owners and Revenue Assets means examples of capital of either factor. Their owners are all members of the reproducing population assumed in the axioms. Each, from newborns up, owns human capital at least. Value and growth and cash flow and output are properties of capital. Tastes, aims and ends are properties of owners. Human capital reads its owner’s aims, and manages both factors to realize them. Positive cash flow is outflow from assets to owners, to exhaust or reinvest or give away as they like. In the last two cases, the owner is mediating transfer out. She also mediates transfer in from reinvestment or gift received. Think of capital as source and present value of foreseen cash flows. Owners are the foreseers, the recipients of positive cash flows, the exhausters of some in taste satisfaction, the deciders of the time preference rates giving present value, and the mediators of transfer out and transfer in (negative cash flow). In the case of the diamond ring, the psychic positive cash flow arrived without mechanics. The more typical case reaches the same outcome indirectly. (Net) output of an asset is its value added, or creation of value. Output can be realized as outflow to owners for reinvestment or gift or exhaust, or it can be left in as growth. The part left in is proprietary or unrealized or self-invested output. Chapter 6: Parallels with the Firm 2/4/16 2 HOUSE_OVERSIGHT_011036