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Explain the difference between profit and profitability and why this difference is important in business?
Profit is what you made after the costs of material for a product or labor for a service. Could be you sold a product or service. Profitability is what you could make. Is that there is a need that needs to be filled or replaced and you can make money doing it.The difference is very important when your planning out location of business, target market, labor any expenses that go into the product or service Or even what your company wants to provide.A business that is not making profit will eventually run out of money and go out of business.
Advantages and disadvantages of being a small business?
Another advantage of having a small business is greater profitability
What is socioeconomic aspect of a business plan?
The socioeconomic aspect of a business plan involves looking at how much money your prospective customers are likely to make. This can affect how you price your product in the business plan.
How does exchange rate fluctuation affect the profitability of company engaged in import export?
The import export business relies on exchange rate. Fluctuations can greatly increase profits, or wipe them out altogether. This is what led to the establishment of the EURO.
What is 'Revenue and Profitability'?
Revenue is the income into the company from Sales or the provision of services. Profitability is an assessment of the companies performance where Revenue & Expenditure are compared and the difference is a profit or loss which thereby indicates the profitability of the business. In simple terms its' ability to make a profit or not.
How do below the line deductions affect the overall profitability of a business?
Below the line deductions can impact a business's profitability by reducing its taxable income, which in turn lowers the amount of taxes the business has to pay. This can increase the business's net profit and improve its overall financial performance.
What considerations determine business' choice of product?
the amount of physical space available for storing the product, the amount of funds needed to purchase the product from the wholesaler or manufacturer, and the profitability potential of offering the product
What factors affect the globalization of an business?
Various factors can affect the globalization of a business. For example, cultural factors may affect how viable a product is in a certain location.
Explain the difference between profit and profitability and why this difference is important in business?
Profit is what you made after the costs of material for a product or labor for a service. Could be you sold a product or service. Profitability is what you could make. Is that there is a need that needs to be filled or replaced and you can make money doing it.The difference is very important when your planning out location of business, target market, labor any expenses that go into the product or service Or even what your company wants to provide.A business that is not making profit will eventually run out of money and go out of business.
What are the measures of profitability?
Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.
How does CPSC affect business?
becasue the some of your thing maybe what they dont like about that product
What is the value of a product minus the costs of raw materials?
The value of a product minus the costs of raw materials is known as the gross profit. It represents the amount of money left over after deducting the direct costs associated with producing the product. This figure is important for assessing the profitability of a business.
How does business risk affect business?
the greater the risk: the greater oppurtunty for reward or failure.What Is Financial Risk?A company's financial risk is predominantly targeted at its shareholders and those who own or buy the company's stocks as this type of risk is based on how a company's finances are structured, and traditionally focuses on corporate debt. Companies that rely heavily on business financing are often considered risky.What Affects a Company's Business Risk?There are several factors that can affect the business risk level of a company. The fluctuations in demand for a certain product or service can certainly affect business risk as this will have a direct impact on a company's profits. In addition, every time a competing company introduces a similar product to the market, it has the potential to drive down costs and sales, both of which can affect a company's earnings. Changes in business risk can also be attributed to external factors like government actions and changes in consumer preferences as well as internal factors like the company's ratio of fixed to variable expenditures.Answer 2:Operations and financial results of any business is riddled with uncertainties and risks which in turn can affect judgments of investors considerably. Market fluctuations is considered one of the major risk factors for businesses as it varies with the economic cycles. Market downturns could lead to decline in products' demand thereby affecting the profitability of a business. Fluctuations in foreign exchange and interest rates can have a great impact on the financial and business conditions of an organization. Natural disasters such as floods, earthquakes, typhoons, as well as accidents, terrorist acts, fatal infection, and many more can have a considerable impact on the profitability of any business. The competitive market is another risk factor that cannot be ignored. A business can experience ups and downs due to the presence of its several competitors in the competitive market.Apart from these, there are several business risk factors that can affect a business. They include implementation of management strategies and structural measures, strategic alliance and corporate acquisition, global business activities, financing, dilution of stock, notes and additional financing, product quality, product sales, rapid technological advancement and other related issues, securing human resources, impairment loss on fixed assets, retirement benefit obligations, and many more. Any of these risks can adversely affect growth and profitability of a business.
What is direct product profitability?
Direct product profitability (DPP) is a financial metric used by retailers to assess the profitability of individual products or product categories. It considers all associated costs, including production, shipping, and marketing, alongside the revenue generated from sales. By evaluating DPP, businesses can make informed decisions about pricing, inventory management, and product assortment to enhance overall profitability. This analysis helps identify which products contribute most to the bottom line and which may need reevaluation or discontinuation.
What are the key proposal evaluation criteria that should be considered when assessing the viability of a business proposal?
The key proposal evaluation criteria to consider when assessing a business proposal are the market demand for the product or service, the uniqueness of the offering, the feasibility of the business plan, the qualifications and experience of the team, the potential for profitability, and the scalability of the business model.
What make pricing of product an important product decision Justify its significance in the light of the growth and profitability of the business?
The pricing of a product is a key factor in determining demand for the product. For instance, if something is priced too high, demand will decrease. If an item is priced lower than competitors, all other factors being equal, then demand for the product will increase.
Advantages and disadvantages of being a small business?
Another advantage of having a small business is greater profitability
