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Profit is what you made after the costs of material for a product or labor for a service. Could be you sold a product or service. Profitability is what you could make. Is that there is a need that needs to be filled or replaced and you can make money doing it.The difference is very important when your planning out location of business, target market, labor any expenses that go into the product or service Or even what your company wants to provide.A business that is not making profit will eventually run out of money and go out of business.
Another advantage of having a small business is greater profitability
Revenue is the income into the company from Sales or the provision of services. Profitability is an assessment of the companies performance where Revenue & Expenditure are compared and the difference is a profit or loss which thereby indicates the profitability of the business. In simple terms its' ability to make a profit or not.
The import export business relies on exchange rate. Fluctuations can greatly increase profits, or wipe them out altogether. This is what led to the establishment of the EURO.
The socioeconomic aspect of a business plan involves looking at how much money your prospective customers are likely to make. This can affect how you price your product in the business plan.
the amount of physical space available for storing the product, the amount of funds needed to purchase the product from the wholesaler or manufacturer, and the profitability potential of offering the product
Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.
Profit is what you made after the costs of material for a product or labor for a service. Could be you sold a product or service. Profitability is what you could make. Is that there is a need that needs to be filled or replaced and you can make money doing it.The difference is very important when your planning out location of business, target market, labor any expenses that go into the product or service Or even what your company wants to provide.A business that is not making profit will eventually run out of money and go out of business.
Various factors can affect the globalization of a business. For example, cultural factors may affect how viable a product is in a certain location.
becasue the some of your thing maybe what they dont like about that product
Another advantage of having a small business is greater profitability
the greater the risk: the greater oppurtunty for reward or failure.What Is Financial Risk?A company's financial risk is predominantly targeted at its shareholders and those who own or buy the company's stocks as this type of risk is based on how a company's finances are structured, and traditionally focuses on corporate debt. Companies that rely heavily on business financing are often considered risky.What Affects a Company's Business Risk?There are several factors that can affect the business risk level of a company. The fluctuations in demand for a certain product or service can certainly affect business risk as this will have a direct impact on a company's profits. In addition, every time a competing company introduces a similar product to the market, it has the potential to drive down costs and sales, both of which can affect a company's earnings. Changes in business risk can also be attributed to external factors like government actions and changes in consumer preferences as well as internal factors like the company's ratio of fixed to variable expenditures.Answer 2:Operations and financial results of any business is riddled with uncertainties and risks which in turn can affect judgments of investors considerably. Market fluctuations is considered one of the major risk factors for businesses as it varies with the economic cycles. Market downturns could lead to decline in products' demand thereby affecting the profitability of a business. Fluctuations in foreign exchange and interest rates can have a great impact on the financial and business conditions of an organization. Natural disasters such as floods, earthquakes, typhoons, as well as accidents, terrorist acts, fatal infection, and many more can have a considerable impact on the profitability of any business. The competitive market is another risk factor that cannot be ignored. A business can experience ups and downs due to the presence of its several competitors in the competitive market.Apart from these, there are several business risk factors that can affect a business. They include implementation of management strategies and structural measures, strategic alliance and corporate acquisition, global business activities, financing, dilution of stock, notes and additional financing, product quality, product sales, rapid technological advancement and other related issues, securing human resources, impairment loss on fixed assets, retirement benefit obligations, and many more. Any of these risks can adversely affect growth and profitability of a business.
The pricing of a product is a key factor in determining demand for the product. For instance, if something is priced too high, demand will decrease. If an item is priced lower than competitors, all other factors being equal, then demand for the product will increase.
profitability
The liquidity means the assest which can easily turned in to cash.. where as profitability is money which u have earned from ur business it is also cash...
basically MBA gives you the business acumen and directions to accelerate profitability and hence teaches us the conditions for safe investment. for more details , you can visit twodaymba.com
what tw ratios measure factors