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In business what is the relationship between risk and profit?
The relationship between the two is that risk is needed to make a profit. A profit is money left over after expenses have been paid. To have expenses you need to take risks.
How are profit and revenue related?
They are not related. Let me briefly explain: You could sell a million dollars and make zero profit. The best way for you to look at this...is that profit is different than cash.
How do dividends and earnings and profits relate?
Dividends, profit and earnings are related as if there is increase in earnings then there is possibly increase in profit as well as increase in dividend amount.
Which financial statement is primarily concerned with reporting the profit-related activities of a business?
Statement of Cash Flows
In accounts why do you charge depreciation in profit and loss account?
Depreciation is charged to profit and loss because that amount of expense has incurred by using related fixed assets for generating revenues so these are also expenses in sence.
How is risk related to profit?
They are both related because risk is needed in order to spend and make a profit. The more risk you take, the more you can gain or lose.
How risk related to profit?
They are both related because risk is needed in order to spend and make a profit. The more risk you take, the more you can gain or lose.
Is risk related to profit?
They are both related because risk is needed in order to spend and make a profit. The more risk you take, the more you can gain or lose.
Profit is not reward for risk taking?
My personal opinion is that profit is the reward of risk avoidance rather than risk taking.
What is the relationship between risk and profit?
If you don't take risk, u won't gain. So, big risk, big profit.....
What is the relationship of business profits and risk assumption?
mostv risk most profit
A risk taker in profit is known as?
entrepreneur
In business what is the relationship between risk and profit?
The relationship between the two is that risk is needed to make a profit. A profit is money left over after expenses have been paid. To have expenses you need to take risks.
Are profit objectives a product of risk?
Yes, profit objectives are often a product of risk, as higher risks typically necessitate higher potential returns to compensate for uncertainty. Businesses assess the level of risk associated with their operations, market conditions, and competition when setting profit objectives. Essentially, the potential for profit must align with the risk profile to ensure sustainable growth and investment viability. Thus, effective risk management plays a crucial role in determining achievable profit goals.
Why managers taking risk in management in any financial institution?
Risk taking is the part of the management duties, because without risk there can be no profit as the old saying goes: "High Risk High Profit, Low Risk Low Profit"But in the financial institutions where there is a transactions are about millions of dollars or thousands of dollars, management has to anticipate and take the proactive measures to invest the money.But approximately all the risk which are taken are measured risks.
Who is a successful Entrepreneur?
Someone who sees an opportunity to make a profit and is willing to risk his or her money to gain that profit
How are profit and revenue related?
They are not related. Let me briefly explain: You could sell a million dollars and make zero profit. The best way for you to look at this...is that profit is different than cash.
