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For a business to make a profit, its total revenue must be greater than its total expenses. This means that the income generated from sales and services must exceed all costs associated with operating the business, including production, labor, and overhead costs. If expenses surpass revenue, the business will incur a loss.
What else can I help you with?
Explain why producers have to have the profit motive?
Every producer must make a profit in order to remain in business. Without profits, businesses disappear.
Why is sales maximization considered an inappropriate business objective?
The primary purpose of any business is to maximize profit, or to make money. Profit is defined as:Profit = Total Revenue from Sales - Total Expenses to make those SalesIn order to make profit, a business must sell something, either be product or service. So maximizing sale is only half of the equation. You also have to minimize expenses in order to maximize profit. If you have less money left after making sales and paying all your bills, you are worse off then when you started. Therefore, profit also have to be greater than zero. (i.e. not lose money).
How can one determine the profit equation for a business or investment opportunity?
To determine the profit equation for a business or investment opportunity, one must subtract the total costs from the total revenue generated. The profit equation is expressed as Profit Revenue - Costs. This equation helps in analyzing the financial performance and potential profitability of a business or investment.
Is profit always a good thing?
Well, you have to remember, if there is no profit there is no business. Businesses must make a profit in order to survive. In this sense profit is good. That being said, businesses should show social responsibility, and should be held accountable for what they sell and how they sell it. In this sense, profit made through means that hurt society or the individuals within a society (to include employees as well as customers) should be noted as not good.
Sam sells necklaces for 10 each Each necklace costs her 5 to make She also has 5000 in fixed costs per year for her jewelry business How many necklaces must she sell in order to make a profit o?
751
What must every business guarantee?
Profit
What must a business consider when setting a selling price for a good or service?
A business must consider profit margin
Explain why producers have to have the profit motive?
Every producer must make a profit in order to remain in business. Without profits, businesses disappear.
Why business must increase?
To create profit for the stakeholders / shareholders.
Has Morrisons made a profit?
Over the years, Morrisons must have made a profit, or it would not still be in business.
What should I do first when starting a business?
If you want to start a profitable home business you first must have a very good homepage where you are able to show your work at the internet. Then you must do merchandising and sponsoring at websites to get traffic to your website to make profit
Why is net profit treated as a liability?
Net profit for a business is liability because it must be paid to equity holder and creditors.
What are the objectives of hotels?
A hotel is a business, much like any other, and it seeks to make a profit. In order to do so, it must make its residents happy enough that they will be willing to pay their rent.
How would one define a business?
A business is an individual or group involved in professional, commercial, or industrial activities. Can be for profit of non-profit. Some kind of transaction must take place for the entity to do business with others.
Why is sales maximization considered an inappropriate business objective?
The primary purpose of any business is to maximize profit, or to make money. Profit is defined as:Profit = Total Revenue from Sales - Total Expenses to make those SalesIn order to make profit, a business must sell something, either be product or service. So maximizing sale is only half of the equation. You also have to minimize expenses in order to maximize profit. If you have less money left after making sales and paying all your bills, you are worse off then when you started. Therefore, profit also have to be greater than zero. (i.e. not lose money).
How can one determine the profit equation for a business or investment opportunity?
To determine the profit equation for a business or investment opportunity, one must subtract the total costs from the total revenue generated. The profit equation is expressed as Profit Revenue - Costs. This equation helps in analyzing the financial performance and potential profitability of a business or investment.
A store makes a profit of 25 on each graphing calculator it sells How many calculators must the store sell to make a profit of at least 275?
a store make a profit of 25 on each graphing calculator it sell.how many calculator must the store sell to make profit of at least $275
