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What is a firm may sacrifice short-run profit to long -run growth and profitability?
Alisah
Long-run growth and profitability will, in the long-run, be far more profitable than short-term gains from risky behaviour, so if the firm expects to exist for the long-run, then it would be optimal to sacrifice short-term profits in order to achieve the higher profit in the future. Economic actors tend to optimise their decisions over not just one period of time but many.
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How can equations and inequalities help a business maximize profit or minimize costs?
Equations and inequalities help maximize profit in a business by simultaneously optimizing the growth and profitability.
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 does the price of share is increased or decreased?
The fluctuation in price of shares stems from a company's profit or ability to earn profit. If profitability increases, then share price increases also.
What are the three goals of a healthy economy?
stable prices full employment and economic growth
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 is the meaning of a firm Amy sacrifice short-run profit to long-run growth and profitability?
Long-run growth and profitability will, in the long-run, be far more profitable than short-term gains from risky behaviour, so if the firm expects to exist for the long-run, then it would be optimal to sacrifice short-term profits in order to achieve the higher profit in the future. Economic actors tend to optimise their decisions over not just one period of time but many.
How can equations and inequalities help a business maximize profit or minimize costs?
Equations and inequalities help maximize profit in a business by simultaneously optimizing the growth and profitability.
What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?
what are the similarities and differences between profit and profitability?
Factors effecting profit?
factor effecting profitability?
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.
What is the difference between profit and profability?
Profit is the financial gain, after the money spent is earned back. Profitability is the ability something has to make a profit.
What are the uses of customer profitability analysis?
To analyze the amount of profit a customer is making.
What is the formula for profitability ratio?
profit margin = net income / total revenue
What is the Formula for calculating profitability ratios?
profit margin = net income / total revenue
What is the purpose of the net profit percentage?
Net profit percentage, which is the percentage of net income to revenues, is a measure of profitability and can show how effective a company is in bringing sales to the bottom line. Net profit percentage can be compared to other companies in its industry, or to the company itself in measuring improvement (or general rate) of profitability.
What are Some of the differences between profit and profitability?
my name is doug evans and i like business studies
What is the relationship between profit margins and growth capacity?
What is the relationship between profit margins and growth capacity?
