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Does revenue include dividends or interest?
No, revenue does not include dividends or interest. Revenue typically refers to the income generated from a company's primary business activities, such as sales of goods or services. Dividends are payments made to shareholders from a company's profits, while interest is income earned from investments or loans, which are considered separate from operational revenue.
What is the difference between operating income and net revenue?
operating income refers to "net" profits. The amount of money a company has after all overhead and taxes. Revenue is the sales for a company from goods sold or "gross income.
What is a revenue that gradually increase with the passage of time?
A revenue that gradually increases over time is often referred to as "recurring revenue." This type of revenue typically stems from subscription-based services, where customers pay a regular fee at set intervals, such as monthly or annually. As more customers subscribe or existing customers renew their subscriptions, the total revenue grows consistently, providing a stable and predictable income stream for businesses. Examples include software-as-a-service (SaaS) companies and membership organizations.
What is the meaning of steady income?
Steady income refers to a consistent and reliable flow of earnings over time, typically derived from employment, investments, or business activities. This type of income is predictable and helps individuals or households manage their financial obligations effectively. It contrasts with irregular income, which may fluctuate due to varying factors. Steady income is often crucial for budgeting and long-term financial planning.
Is revenue reserves the same as profit?
No, revenue reserves are not the same as profit. Revenue reserves refer to the portion of a company's profits that are retained within the business for future use, rather than distributed as dividends to shareholders. Profit, on the other hand, is the total income generated by a company after all expenses have been deducted. Essentially, profit can contribute to revenue reserves, but they represent different financial concepts.
Match each business model with the advantage it brings.?
a. Subscription Attractive prices for basic product B.Bait and hook Steady revenue and predictable profits C.Cutting out the middleman Reduction in transaction costs and processing time
What is revenue minus expenditures?
Profits
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
To reduce the level of inflation monetarists advocate a a sharp increase in short term interest rates b steady and predictable changes in the money supply c a decrease in govt spending?
The Answer is B) Steady and predictable changes in the money supply.
Why are profit maximize when marginal revenue is equal to marginal cost?
Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.
What is a revenue model?
Describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
What is a source of revenue?
profits that are generated thru distubuting of products of servies
A producers profits are maximized when marginal costs are .?
equal to marginal revenue
A producers profits are maximized when marginal costs are?
equal to marginal revenue
Profits is calculated by subtracting costs from what?
Profit is calculated by subtracting costs from revenue.
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