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The factors influencing the business policy of a firm are the items written into the mission statement for the firm. A mission statement is a guide for the firm listing their goals and the way they want to conduct business.

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What are the Factors affecting beta of a portifolio?

Factors that affect the beta of a portfolio are the kind of business the firm is in, and the extent of operating leverage the firm has. A third factor is the extent of the firm's financial clout.


Why is it important to monitor the macro-environment of a firm?

It is very important to monitor the macro-environment of a firm as they will directly affect the organization. These are external factors that a firm will not have control over and will affect the performance of the business.


What are the factors influencing cost behavior in a firm?

Cost behavior in a firm is influenced by several factors, including the nature of the costs (fixed, variable, or semi-variable), the level of production or sales volume, and operational efficiency. External factors such as market conditions, supplier pricing, and competition also play a significant role. Additionally, managerial decisions regarding resource allocation and cost control strategies can impact how costs behave as business conditions change. Understanding these factors helps firms plan and manage their budgets effectively.


What is the enternal and external for the firm?

Internal & External FactorsInternal factors that affect businesses come from within the business itself, without regard to any outside factors like customers and other businesses. External factors would be opposite.Internal factors:1) Employee Turnover/Employee Satisfaction2) Management of Resources3) Research and DevelopmentExternal Factors:1) Advertising2) Quality of business reputation, or quality of products business produces3) Competition by other businesses


When a firm goes out of business it is called?

A firm may go out of business due to many reasons such as retiring, forced to sell by illness, or bankruptcy. But, usually when we hear that a "a firm goes out of business.." our thoughts would immediately think bankruptcy or failing.

Related Questions

Key steps involved in formulating treasury policy of a firm?

One of the key steps in formulating a treasury policy is establishing the strategy for the business. The strategy will determine the monetary policy for the business.


What are the Factors affecting beta of a portifolio?

Factors that affect the beta of a portfolio are the kind of business the firm is in, and the extent of operating leverage the firm has. A third factor is the extent of the firm's financial clout.


What is a liquidation policy?

when a business or firm is terminated or bankrupt its assets are sold and the proceeds pay creditors


Explain the factors detemimining working capital requirements of a firm?

The nature of the business, seasonality of production and the production cycles are some of the factors that determine the working capital requirements of a firm.


Why is it important to monitor the macro-environment of a firm?

It is very important to monitor the macro-environment of a firm as they will directly affect the organization. These are external factors that a firm will not have control over and will affect the performance of the business.


What factors might influence a firm's price-earnings ratio?

The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors


What are the factors influencing cost behavior in a firm?

Cost behavior in a firm is influenced by several factors, including the nature of the costs (fixed, variable, or semi-variable), the level of production or sales volume, and operational efficiency. External factors such as market conditions, supplier pricing, and competition also play a significant role. Additionally, managerial decisions regarding resource allocation and cost control strategies can impact how costs behave as business conditions change. Understanding these factors helps firms plan and manage their budgets effectively.


Does every business firm have business strategies?

Not every business firm but lots of them have at least one business strategies.


What do business economists do?

Business economists perform such tasks as forecasting the business environment, interpreting the impact of public/governmental policy on the firm, and collecting and processing data. They also supply information to management that affects decisions


What is a key person life insurance policy?

A key person life insurance policy is not a special kind of policy. The use of the policy is what makes it a key person policy. Key person life insurance is an arrangement by which a business buys a life insurance policy on the life of a key employee.Companies realize that when they lose key employees, the business itself can suffer a loss of that person's expertise and/or revenue that he brings to the firm. If the employee dies, the business receives policy proceeds. Theoretically, the death benefit equals the losses that the business suffered as a result of his/her death.


What are products that brings profits for a business?

any output from factors of production can bring revenue depending on the industry where a firm operate in


What is inter firm comparison?

Inter-firm comparison is where you compare your particular firm or business to that of another business who are in a similar situation