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What are the advantages and disadvantages of profit maximization?
The advantages of profit maximization is that creates a cash flow and investors become interested in companies that are maximizing their profits. The main disadvantage of it is that there are risks for business owners involved.An advantage of profit maximization is that it could create a huge increase in cash flow as long as the market remains good. However, a disadvantage is that if the market collapses during a period of profit maximization the business could lose everything.
Who wrote that the social responsibility of business is to increase profits?
Milton Friedman, an American economist and Nobel laureate, famously stated that the social responsibility of business is to increase its profits. In his 1970 essay for The New York Times, he argued that businesses should prioritize profit generation for their shareholders while adhering to the law and ethical standards. Friedman believed that engaging in social responsibility beyond profit-making could undermine a company's primary economic role.
If a company has large gross margins will it also have large profits?
Not necessarily. While large gross margins indicate that a company retains a significant portion of revenue after accounting for the cost of goods sold, overall profitability also depends on other factors, such as operating expenses, taxes, and interest. A company with high gross margins could still report low or negative profits if its operating costs are excessively high. Thus, while high gross margins can contribute to profitability, they do not guarantee it.
What are words with the word profit in them?
Profitable, non-profit, profits, profited, and profiting are all good examples. Hope I could help!
How much profit does burger make a year in pounds?
The annual profit of a burger business can vary widely based on factors such as location, business model, and scale of operations. A small independent burger restaurant might make anywhere from £30,000 to £100,000 in profit per year, while larger chains or franchises could see profits in the millions. Ultimately, precise figures would depend on specific operational costs and revenue.
Is the goal of a business to have the lowest average cost?
Not exactly. The goal of a business is to have the best margins and profits from the products sold. Part of having a good margin is having a low product cost, but the other part of having a good margin is having a high sale value. The ideal situation is where the average cost of the product tends to $0 and the sale value of the product tends to infinity and the number of product sold tends to infinity.You could imagine a situation where a business has an average cost per product of $10 per unit and a sale value of $15 per unit. This means that there is $5 in margin or profit. You could also imagine a situation where the average cost per product were $25 per unit and the sale values is $60 per unit. This means that there is $35 in margin or profit. The $35 profit is much better than the $5 profit even though the average cost is higher.
How could a merger help a business increase profits?
A merger can help a business increase profits by combining resources, leading to cost savings through economies of scale. It allows for improved market share and access to new customer bases, which can boost sales. Additionally, a merger can enhance operational efficiencies and reduce competition, enabling the merged entity to set higher prices or improve margins. Overall, the synergy from the merger can drive increased profitability.
Is net profit an asset or liability?
In a way profit could be considered an asset but its a stretch. Profit is term used to describe the earnings left over after you subtract the expenses related to the earning of that profit. The retained earnings would actually be the asset. The term profit is just a way to tell if your business is making money (or profitable) and doesn't really fall into the asset category. You will not see profits on a balance sheet rather you will see earnings.
What are the indicators of a performing business?
If it is a publicly traded business you can always look at the stock price! But profits, rate of growth, reputation ect.. could also indicate a performing business!
What is profit before depreciation?
The answer is in the question really. It's the profit a business makes before depreciation is charged. As depreciation is a non cash item it could be argued that it's the cash profit. However, there could be provision in there so calling it the cash profit is not strictly true.
What is a good non profit job?
Depending out what your interests are there are many non-profits to check out. Nonprofitjobs.org would be a good place to start.This site gave a good list of non-profit jobs, I could easily start there.
How does opening up a new business help create wealth?
creating a new business helps crete welth, because: if the product/service is successful then it should hopefully bring in profits, if you have another business that could possibly be struggling creating a another new business is quite a good idea as it can support your older business if enough profits are made, this can be described as diversification!
