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What is 'value of a firm'?
The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.
What is a firm's value?
The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.
How much of your profits does an investment firm usually take?
The amount an invetment firm takes varies depending on your investment and any deals you were able to make at the beginning. Sit with an investment firm and see what they will charge you if your investment makes a profit.
If the firm's sales revenue income exceeds its expenses the firm has earned a profit?
If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
What is the Difference between Normal profit and Economic Profit?
In economics, normal profit is often called the break-even point. It is the level of profit where all of the costs of your business, including the salary of the CEO, are covered. When a firm has normal profit but not economic profit, the total revenue of the firm equals the total cost of the firm. However, if a firm has economic profit, total revenue is higher than total cost.
Which firm is good leveraged or unleveraged while firm is getting profit?
leveraged firm is good because it has low risk than unleveraged firm while earning same amount of profit.
What is the ideal Gross profit margin of a firm?
There is no exact ideal gross profit margin and it depends on size of firm, the industry in which firm is operating and many other factors like competitors profit and market segmentation etc.
When do you say a firm is in equilibrim?
a firm is in equillibrim when it attains its maximum profit
Is operating profit margin and profit margin the same?
No. Operating profit margin usually means profit in terms of strict cost and revenues of the firm itself. Actual profit margin includes other, non-firm specific costs, such as payment of debts (which is not part of operation but still a liability of the firm).
What measures how effectively a firm uses its assets to generate revenue?
The measure on how effectively a firm uses its assets to generate revenue is the profit margin. This will determine if the firm is running at a profit or at a loss.
How does a firm compute Profit margin?
gross profit is divided by net sales.
What are the financial objectives of a firm?
To make a profit.
