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Why do firms purchase of other corporations Are they simply paying too much for the acquired corporation?
Some firms might purchase other corporations in the hopes of making a profit. They might buy cheap and sell higher. Some firms might also buy other corporations to buy up the competition in a particular industry.
Do commercial banks offer their services only to businesses?
No. They offer their services to Individuals, Corporations, Small or medium enterprises, non profit organizations etc
Why do investors buy stock in a corporation?
Investors buy stock in corporations because they expect the value of stock to rise and they wish to receive dividends (shares of profit).
What is the meaning of gross profit margin?
Your Gross profit margin is the price you sell a product for minus the cost you paid for that product. It does not take into cinsideration the overhead of your business. If you sell a product for $100.00 and it cost you $90.00, you made $10.00 gross. If the cost of your overhead comes out to $20.00, you have a net profit of -$10.00. Many companies can have a gross profit and lose money overall. Obama's current plan is to ensure more corporations show a gross profit and lower net profit.
Why bank established as corporation?
Banks are established as corporations because corporation is formed by number of persons who pool in their resources to enter business for profit. The methods of financing available to such type of organization. The sale of stock and bonds can raise a greater amount of capital which is needed to undertake the business with multifarious functions. Banks, which by their very nature, invest into large amounts of capital. Furthermore, loans are given out for long durations and only an entity with a long tenure could be beneficial in such a case. Corporations then meets this test because of its perpetual life.
What is the difference in profit vs non profit corporations?
Where as non profit corporations work with the ulterior motive of public welfare, where profit motivation is secondary, the profit corporations work solely with the aim of maximization of profits at whatever means available.
How do corporations distribute profit to there owners?
The corporations distribute profit according to the share porportions of the partners or as per mutual settlement during inception of business.
What are some of the strategies Multinational corporations can use to make a profit by leveraging the growing consumer demand?
Leveraging consumer demand to make a profit by multinational corporations can be done by using competitive marketing and diversification.
What are the functions of government corporations?
The functions of government corporations are mainly to avail government services to citizens. Most major cities will have offices to such corporations.
Is Coca-Cola most likey to be a profit or nonprofit corporation?
Profit, they generate an excess income. Non-profit corporations rarely, if ever get as big as Coca-Cola
Which of the following is a key goal of government corporations?
Make a profit and add to the government's revenues
One of the important differences between public bureaucracies like the DMV and private corporations such as McDonalds is that government bureaucracies?
are not organized to make a profit, while private corporations are
Why are America's top corporations successful?
The top corporations in America are successful because they may a profit every year. They do this by selling units of their product, as well as keeping expenses low.
When was the Henry Ford Academy established?
It was devoloped by global corporations and public educations and a non-profit cultural institution
What ratios in accounting is a common analytical tool used by merchandise corporation but not service corporations?
gross profit ratio
One of the important differences between public bureaucracies and private corporations is that government bureaucracies?
Are not organized to make a profit
What is a business firm with many owners who each owns shares called?
A business with many owners with each owning shares of the firm is called a corporation. Corporations can be a profit or not for profit business.
