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A rapid rate of growth on sales may require?
Increased borrowing by the firm to support the sales increase.
How can rapid corporate growth in sales and profits cause financing problems?
Oftentimes when a business undergoes rapid growth in sales and profits, asset growth also increases rapidly. It may be difficult for a business to come up with the funds from suppliers, the bank, or stockholders in a reasonable amount of time. For example, if I made $30K profit this year but asset growth was $60K due to the growth, I would have to find a way to finance the remaining amount.
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
What does a rapid rate of growth in sales require?
we have to introduce the sales force promotional activities to increasing the sales advertising on particular areas for attracting the customers, giving the coupons as per our company targets .the main thing is that in these all activities don with standard way of implementation
What are Organic sales increase?
From: http://www.investopedia.com/terms/o/organicgrowth.asp Organic Growth The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and therefore, are not considered organic. Organic growth represents the true growth for the core of the company. It is a good indicator of how well management has used its internal resources to expand profits. Organic growth also identifies whether managers have used their skills to improve the business.
What is Organic change?
The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
What is business organic change?
The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
How can the relationship between sales and profits be written?
The relationship between sales and profits can be expressed through the profit margin formula, which is (Profit / Sales) x 100. This formula shows what percentage of sales results in profit. A higher profit margin indicates that a company is more efficient at converting sales into profit.
Economic Boom?
Was a period in American History often referred to as the Roaring Twenties. This period of economic boom was marked by rapid industrial growth and advances in technology. The Economic Boom in the 1920's saw increases in productivity, sales and wages accompanied by a rising demand for consumer products leading to massive profits for businesses and corporations.
What is the potential relationship between gross sales and profits?
The potential relationship between gross sales and profits is that as gross sales increase, there is a possibility for profits to increase. However, it is important to note that gross sales alone do not determine profitability. Other factors such as expenses, cost of goods sold, and operational efficiency also play a role in determining the level of profits.
How does sales growth affect account receivables?
Growth in sales should always be compared to growth in receivables.
Calculate monthly sales growth?
To calculate monthly sales growth a sales company needs to compare the sales from a previous month with that of the current month. If current sales is divided by a previous month sales, the end result will be the percentage of sales growth.
