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Profit Pooling is when a manager chooses the most profitable activity in an industry and decides to engage in that activity for the purpose of generating large proportion of profit from the industry. Example: Education industry - there are many activities in this industry, some are more profitable than others, a strategic manager will consider external and internal elements (Weakness, strength, competitor, law, etc.) to engage in one of the activities for the purpose of earning Above Average Return (AAR). If he succeeds, then we can say there is profit Pool from education industry. -Jude Ehiokhihen E.
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How do you calculate profit margins?
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Which is better gross profit or net profit?
net profit
Is general motors for-profit or not-for-profit?
General motors is for profit company.
How do you calculate a profit margin ratio?
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Distinguish between normal profit and abnormal profit?
Normal profit is the expected profit in a business. Abnormal profit comes from an unexpected source and is usually a unique instance.
What is the business where investors pool their money to earn a profit?
banking
What is a mutual fund's objective?
The objective of a mutual fund is to pool in money from investors and use it to invest in investment vehicles thereby trying to generate profit for the investors and use the same to profit the company that runs the Mutual fund.
Is Mcdonalds a non-profit or profit?
Starbucks is a for profit company.
What does profit margin mean?
Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin
Is macdonalds a for-profit or Non-Profit or Not-for-profit organization?
McDonald's is a for profit company. It is not a nonprofit or a not for profit, which are synonyms.
What are 3 motivations of a business?
Profit, profit and profit.
Is Walmart a profit or non profit company?
profit
Is apple a profit or non-profit business?
profit.
How do you calculate profit margins?
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Which is better gross profit or net profit?
net profit
What are the two types of profit?
Gross profit and Nett profit
Is American Eagle Outfitters profit or non-profit?
profit
