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Because they need money to stay at float and be able to compete with other companies.
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What is the main objective of an internal quality audit?
to measure effectivenesss
What is the objective book keeping?
These are the main objective of book keeping:To record the business recordTo maintain accounts in proper wayProvide information at the spot
What is a role of accounting information in planning and control?
Accounting information primarily reveals two things, one the financial performance and two, the financial position. Every economic entity has certain objectives and the main objective of commercial entities is to make profit and increase the wealth. for attaining these objectives, a firm need to plan and control the activities in such a way to attain the objectives. Accounting Information reveals the performance and position periodically, enabling the management to plan and control the activities. Objectives of a business are long-term, which may take a time span of 3 to 5 years to achieve. Accounting information on the activities of business reveal the speed and direction in which the firm is moving. By altering the course of action a firm can regulate the performance of a business. By considering the achievement during a period, a firm can plan its actions for the forthcoming accounting periods.
Define branch account?
Account which are opened in the books of head office and branches, related to branches are called branch accounts. The main objective of these accounts is to know the working ability and profit and loss of branches. They also includes the final accounts related to them, by which their financial condition is known.
What is the main objective of accounting in our lives?
for collecting or whole information of other account very easy
Why Profit Maximisation is the main objective of a firm Discuss this statement with the help of an example?
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
Is it true or false that the objective of a firm is to maximize total revenue?
Generally speaking, the main objective of a firm is profit maximisation. This is not always the case, however, as some firms have different goals, including providing charitable services, satisficing, and providing a high quality good or service.Revenue (income) increases profit, while expenses decrease profit. Therefore, if a firm's revenue increases more than their expenses increase, they will generate a greater profit.
What are the main functions in a business?
to maximize profit.
What are the difference between value maximation and profit maximation?
Value maximization and profit maximization are very much related, the main difference being- value maximization means increases in owners' wealth achieved by maximizing of the value of a firm's common stock. profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. the other difference among the two could be sited as- value maximization is seen as long term objective of a firm, whereas profit maximization is generally a short term objective.
Why profit is not regarded as the core financial objective of a firm?
in every company profit has being taken as the successful matter,'' but expenses requirement has being provided depend with the maximum profit of the company's.Due to that my considerations is that am disagree with the question!'' profit is the main objective core with in a company. because all submission of the company has being base in year depend with the shareholders wealth. by important basis are being required to them as the main speakers in evaluate financial decisions by addition profit make the higher salary due to the improvement with in graph year's to all employees with in a business handle.
Profit maximization is the basic objective of firm?
A firm's main objective should be to make decisions that maximize the value of the company for its owners, and as the owners of a company are its shareholders, the main financial objective should be 'the maximization of shareholder wealth'. Since shareholders receive their wealth through dividends and capital gains, shareholder wealth will be maximized by maximizing the value of dividends and capital gains that shareholders receive over time. Problems with the 'maximization of profits' objective: Firstly, there are quantitative difficulties associated with profit. Maximization of profits as a financial objective requires the profit to be defined and measured accurately, and that all the factors contributing to it are known and can be taken into account. It is very doubtful that this requirement can be met on a regular basis. E.g- If 5 auditors go into the same company, it is very likely that each will come out with a completely different profit figure. A second problem concerns the timescale over which the profit should be maximized. Should profit be maximized in the short term or the long term?? Given that profit considers one year at a time, the focus is likely to be on short-term profit maximization at the expense of long-term investment, putting the long term survival of the company into doubt. There are many examples of companies going into liquidation shortly after declaring high profits. Check out - Polly Peck Plc's dramatic failure in 1990! (good example) The third problem is that profit does not take account of or make any allowance for risk! It would be inappropriate to concentrate efforts on maximizing accounting profit when this objective does not consider one of the key determinants of shareholder wealth. So the 'maximization of profit' is not a suitable core objective for a company. That is not to say that a company does not need to pay attention to its profit figures, since falling profits of profit warnings are taken by the financial markets as a sign of financial weakness. Instead these sort of profit targets/objectives should can serve a useful purpose in helping a company to achieve short-term or operational objectives within its overall strategic plan.
What is profit seeking organization?
Some organisations,such as companies and partnerships, see their main objective as maximising the wealth of their owners. Such organisations are often referred to as 'profit - seeking'
What is the aims and objective of homebase?
Homebases' main aims and objectives are to: *maximize sales *make their stores and services accesible to everyone *improve the quality of their products
What's the main goal of a publicly-traded corporation?
The main goal of virtually every publicly-owned company has always been to maximize shareholder value by generating as much profit as possible
What is the objective of computer shops?
As with all commercial enterprises, no matter what they sell, the main object is to make a profit at the end of the financial year.
Why is earning profit considered as only one of the objective of business?
Earning money is a businesses main objective because it has investors that expect a return on their money. When businesses don't make money they stop existing.
What are the primary goals of business finance?
Main goal of virtually every publicly owned company has always been to maximize shareholder value by generating as much as profit possible. Many companies have begun to balance this primary objective with other social and better environmental goals that help appease stakeholders and help produce of profits.
