Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
net profit
General motors is for profit company.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Normal profit is the expected profit in a business. Abnormal profit comes from an unexpected source and is usually a unique instance.
why is the distinction between insurable and uninsurable risks is significant for the theory of profit
Einstein's theory of people.
Colonialism.
maximising sales and it is where AC=AR..this the point where the maximum amout of sales take place. The firm only makes a normal profit at this stage.
risk bearing theory frictional theory monopoly innovation managerial effeciency
The Innovation Theory of Profit has been propounded by: F.H. Knights Keynes F.B. Hawley Kent Joesph Schumpeter.
D. McLean Lamberton has written: 'The theory of profit'
For A+ : Socialism
s vary among firms? support each theory with practical five examples
making the best possible use of resources which can a
Interest on loan to a business is a finance cost. Irrespective who the loan is coming from, the cost of sericing the loan, that is, the interest, is to be charged in the Income Statement. In theory it is not an appropriation (division) of profit.
Briefly stated - that it is run along the same lines as a legitimate corporate entity, with a profit motive in mind.