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Operating enterprise funds at a profit can enhance financial sustainability, allowing the organization to reinvest in infrastructure and services without relying on external funding. Profit generation can also provide a buffer against economic fluctuations, ensuring that essential services remain funded during downturns. Additionally, a profit can signal operational efficiency and effective management, bolstering stakeholder confidence and potentially attracting further investment or support.
What else can I help you with?
It is desirable to operate enterprise funds at a profit?
Unlike the service funds, it is frequently desirable for enterprise funds to operate at a profit (increase in net assets). Like commercial business, operating profits are necessary to establish adequate working capital, provide for expansion of physical activities, and retire debt. Additionally, governments may find it desirable to use enterprise fund profits to support general government expenditures that would otherwise require increased taxes.
What happens to resources when a pure monopoly is at the profit maximizing output?
The economy is at equilibrium as both government suffer insufficient funds
Where does the money come from when you borrow from a bank?
When you borrow money from a bank, the money comes from the bank's deposits and reserves, which are funds that the bank holds from its customers and other sources. The bank uses these funds to lend to borrowers, charging interest on the loans as a way to make a profit.
Explain the difference between an investor and a creditor of a business?
A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.
How would the use of eftpos by a retail business improve its productivity?
Since the funds are transferred immediately from the customer to the retailer, the retailer doesn't have to wait for the money to clear the banking system. This means the retailer will have more cleared funds at their disposal - meaning they can use the funds to buy more stock - giving the customer more choices. Hopefully that would lead to customers spending more money - making more profit for the business.
It is desirable to operate enterprise funds at a profit?
Unlike the service funds, it is frequently desirable for enterprise funds to operate at a profit (increase in net assets). Like commercial business, operating profits are necessary to establish adequate working capital, provide for expansion of physical activities, and retire debt. Additionally, governments may find it desirable to use enterprise fund profits to support general government expenditures that would otherwise require increased taxes.
Are private universities for profit institutions?
Private universities can be either for-profit or non-profit institutions. For-profit universities operate with the goal of making a profit, while non-profit universities reinvest any surplus funds back into the institution.
Can a non profit organization operate under the umbrella of a for profit business?
== == I'm not sure what you mean by "umbrella". It cannot be a part - like a division - of a for profit business. I presume you mean can a qualified tax exempt not for profit Incorporated entity be a subsidiary of a for Profit Co... No. A zillion reasons, but lets leave it as it couldn't be a qualified NFP entity. ::edit:: A for-profit business can in fact start a non-profit. Of course, there are stipulations regarding management, operation, board structure, and inurement of funds, but the underlying point is that, though challenging, it is possible. http://www.socialedge.org/features/skoll-world-forum/discussions/business-models/creating-a-hybrid-for-profit-non-profit-social-enterprise-structure/view ::end edit::
Can a for- profit business operate under the umbrella of a non-profit organization?
== == I'm not sure what you mean by "umbrella". It cannot be a part - like a division - of a for profit business. I presume you mean can a qualified tax exempt not for profit Incorporated entity be a subsidiary of a for Profit Co... No. A zillion reasons, but lets leave it as it couldn't be a qualified NFP entity. ::edit:: A for-profit business can in fact start a non-profit. Of course, there are stipulations regarding management, operation, board structure, and inurement of funds, but the underlying point is that, though challenging, it is possible. http://www.socialedge.org/features/skoll-world-forum/discussions/business-models/creating-a-hybrid-for-profit-non-profit-social-enterprise-structure/view ::end edit::
How do load funds operate?
Shares in load funds are usually sold through separate distributorships
Can a 501c3 organization donate funds to a for-profit business?
No, a 501(c)(3) organization cannot donate funds to a for-profit business as it is against IRS regulations for tax-exempt organizations to provide financial support to profit-making entities.
Can a non-profit partner with a for-profit corporation to do phone solicitation and and pay them out of funds collected?
Yes, it is a common practice.
Why don't non-profit organizations have to pay into the unemployment insurance funds?
cause
Is profit equal to the amount of cash collected by an entity?
No, profit often includes cash, but it rarely the entire quantity. Profit is usually the combination of liquid and non-liquid funds.
Which of the the following is not the source of funds profit after taxshare capital issuedsale of investmentsshare buyback?
The source of funds typically refers to the means by which a company raises capital. Among the options provided, "share buyback" is not a source of funds; rather, it represents a use of funds as the company repurchases its own shares. In contrast, profit after tax, share capital issued, and sales of investments are all ways through which a company can generate or raise funds.
Why might one invest in mutual funds?
One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.
What are the various approaches of financial management?
Traditionally Finance involves arrangement of funds required by the business enterprise from and through financial institutions ('from' signifies procurement of loan capital, and 'through' implies the selling of securities by financial institutions). Hence, the traditional approach of financial management focused on 'arrangement of finance' for meeting various financial needs of an enterprise. In the modern sense, financial management encompasses wider applications, viz., assessment of funds required, effective procurement of those funds through most economical means, and efficient utilisation of those funds through profitable investments, as well as cash and liquidity management. To put it in the words of Ezra Solomon, the key questions in financial management of a business enterprise happens to be: "(i) What is the total volume of funds an enterprise should commit? (ii) What specific assets should an enterprise acquire? (iii) How should the funds required be financed?" These questions, if answered properly, lead to four broad decision areas of financial management, viz., funds requirement decision, financing decision, investment decision, and dividend decision.
