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is this in relation to energy markets?

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15y ago

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What are the differences between profit and sales maximisation objectives?

A Sales Maximisation objective aims at increasing the cash value turnover/Sales Income/Revenue. Costs and expenses are not taken into account. Profit maximisation seeks to increase the bottom-line profit, regardless of sales or other considerations. Profit = sales less costs. If sales reduce, but if costs reduce by a greater amount, profit will increase. If sales are less in such a scenario, the work required to achieve sales may be less, so more profit is being made with less effort, which would be a good indicator of the organisation's efficiency and ability to trade successfully despite business challenges. Profits can also be increased by maintaining at costs at their present level, and increasing the selling price. Assuming that the volume of sales does not decrease, bottom-line profits will increase. Sales maximisation can be an valid objective if the sole aim is to increase market share or other related reasons. However, Sales Maximisation accompanied by ever-decreasing profits cannot be sustained indefinitely.


Why are Price level adjustments required?

Changing Government fiscal policies Abuse of office (corruption) Inflation Varying cost of labour and other inputs Profit maximisation


Why is wealth maximisation superoir to other objectives of business firm?

Every business including Not for profit need to make money to function. The financial income is always the first thing noted as without the income all other aspect will eventually cease.


How do you get money good in roblox?

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What is alternative music an alternative to?

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Net profit is the profit from gross profit after addition of other [realised] income and deduction of expenses and tax.


Can a non profit company also be a profit company?

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Economic profit is when revenue exceeds total cost of inputs. Normal profit, on the other hand, is net profit less costs.


What is the synonym for other?

one of the synonyms for other is alternative


What are the criticism baumol's sales maximisation model?

Criticism of Baumol's sales maximization model includes the assumption of profit maximization as the main goal of firms, the lack of consideration for other objectives like shareholder wealth maximization, and the oversimplification of managerial behavior by focusing solely on sales revenue. Additionally, critics argue that the model does not account for dynamic market conditions and competitive strategies that firms may adopt.


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What are two standard methods of determining profit?

Other than DOD weighted guidelines what is the other government standard method to evaluate profit??