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Capital and profit are closely related in that capital is the financial resource invested in a business to generate goods or services, while profit is the return on that investment after accounting for expenses. The effective use of capital can lead to higher profits, as it enables businesses to expand operations, improve efficiency, and innovate. Conversely, insufficient or poorly allocated capital can limit profit potential. Thus, the relationship is cyclical: capital drives profit, and profit can reinvest into capital for further growth.
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What relationship exists between cost of goods sold and gross profit?
ask DR. Mohammed Khalid LOL
What is the relationship between profit margins and growth capacity?
What is the relationship between profit margins and growth capacity?
Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
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.
What relationship is there between the accounting equation and the balance sheet?
The relationship between the accounting equation and the balance sheet is the NET PROFIT. ( I THINK :/ )
What relationship exists between cost of goods sold and gross profit?
ask DR. Mohammed Khalid LOL
What is the relationship between profit margins and growth capacity?
What is the relationship between profit margins and growth capacity?
Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
How can the relationship between sales and profits be written?
The relationship between sales and profits can be expressed through the profit margin formula, which is (Profit / Sales) x 100. This formula shows what percentage of sales results in profit. A higher profit margin indicates that a company is more efficient at converting sales into profit.
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 does strategic management differ in profit and non profit organizations?
a. relationship between IMC processes and marketing strategy in profit and not-for-profit organizations.
What relationship is there between the accounting equation and the balance sheet?
The relationship between the accounting equation and the balance sheet is the NET PROFIT. ( I THINK :/ )
Why net profit added in capital?
Net profit of current fiscal year added in capital because it is part of owners capital because owners have invested capital to earn profit.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
How reserves are part of capital?
Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
What is the relationship between risk and profit?
If you don't take risk, u won't gain. So, big risk, big profit.....
Relationship between Cash Crop and Slavery?
The relationship, was that slaves were needed to harvest the crops, so the plantation owner could get his profit from them.
