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There has been a great increase in Cost of goods or expenses.

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Q: Why might a company have an increase in revenue and a fall in profits at the same time?
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If sales increase will profits always increase?

Sales might increase because prices dropped. They might increase because more expensive salesmen were hired. They might increase because the neighborhood improved in value, however, taxes will go up or rent will go up. Thus, just because sales increase does not mean profits always increase.


When might a company be criticized for its lack of corporate social responsibility?

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What are the causes of retrenchment?

Retrenchment is the act of cutting down or reduction, particularly in the area of public expenditure, money availability would cause the need to retrench.Some of the causes of retrenchment are:Technology:New technologies can cause the need for company reorganization. For instance, if there is a new machine that digs a ditch, you would hire a person to run the machine, but let go the ten man shovel crew.Economics:A company might need to reduce costs, or simply wish to increase profits. Sometimes retrenchment is needed for a company's economic survival.Structural:The restructuring of a company can sometimes make a position redundant. To increase efficiency, some people may be offered other positions. If they do not wish to take the new position, they could be retrenched.


Why do business objectives change over time?

A small business might aim to survive but when it is successful it might change its aims to increasing profits.


Why might a firm continue to operate when they are not making profits at the moment?

Profits can fluctuate. Just because a firm is not making a profit at the moment does not mean that they won't be making a profit in the future. Hope springs eternal.

Related questions

Takl about competitors and how they might try and increase profits?

A competitors is a person that buys something from a business


If sales increase will profits always increase?

Sales might increase because prices dropped. They might increase because more expensive salesmen were hired. They might increase because the neighborhood improved in value, however, taxes will go up or rent will go up. Thus, just because sales increase does not mean profits always increase.


What if your company's CEO has just learned that your firm's equity can be viewed as an option Why might he want to increase the riskiness of the company and why might other stakeholders be unhappy ab?

Your company's CEO has just learned that your firm's equity can be viewed as an option. Why might he want to increase the riskiness of the company and why might other stakeholders be unhappy about this?


What new ideas can you give or use to increase your profit as a junior manager?

manager of what? Not enough detail was provided to anser the question. Perhaps if you were able to properly posit your questions, your profits might increase...


How might a firm increase its profits by raising its wages?

A firm might increase its profits by raising its wages to attract more qualified staff. The staff may stay longer and be more committed and good at their jobs as a result of higher pay. They will be happier which will result in increased customer satisfaction. The firm will make more money as a result of having more efficient workers.


Public limited company would change to a franchise?

A public limited company might want to change to a franchise business because they want to invest in more money and gain more profits.


What might explain why a company is large or small?

Its Market capitalization, gross profit, gross revenue, number of employees, number of clients etc


Why might the southern cone of south america decided to form a trade group?

Most likely because of their location and desire to increase economic status and revenue


Where might one purchase a Samsung pink smartphone?

Since Lee took control of Samsung in 1987, sales have surged to $179 billion last year, making it the world's largest electronics company by revenue. That makes Samsung Electronics the world's largest electronics company by revenue.


What is an example of a strategic decision that a company might make?

Examples of strategic decisions might be to focus efforts on a new product or to increase production output.


How might lowering corporate income tax impact state revenue?

Attracting more businesses might raise corporate tax revenue.


When might a company be criticized for its lack of corporate social responsibility Answer apex after cutting wages and benefits in order to increase profit?

After cutting wages and benefits in order to increase profit