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The stockholder's share of a company's profits are called dividends.
Annual profits decrease
This kind of pay is directly related to the profits of a company. If the company does well and makes a high profit, then you in turn make for money. But if the companys profits decrease or even lose money, then you would in turn suffer a decrease in your pay.
A consulting management relationship can improve the a companys interaction with its clients and sale prospects. This can extend company life and maximize company profits.
By doing things that increase profits on the business you have. Efficiency Increase earnings by increasing sales. Using profits to expand business: like buy anoter truck or open another store or enlarge. Use new capital to expand like number two.
One of the factors that may affect a company's debt level is management. Another factor that may affect debt levels is whether the company is making profits or not.
Impact on the companys balance sheet is:Retained earning n the accumulated profits of the company decreases & the share capital with the same amount increases.The entry passed isRetaned earning/ Accumulated profits a/c Dr.To Equity share capitalIt is merely transferring the amount from accu profits to the equity cap a/c n not increase in any amount or cash with the company.
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!
The private sector can aid the economy by generating profits. This will allow for them to invest in more research and in creating new businesses. Also, the taxes on their profits can be used to create anti-poverty programs.
The average variable cost curve compares the company's maximum performance to its present state. For example if the minimum profits are to the left of the AC it means the company will decrease profits by increasing their production. Therefore creating a curve.
Henry Fielding
The operating income increases when a company makes more products than it can sell in a period. It is cheaper to produce more at one time and the profits increase because the price stays the same.