MEANING Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decision with respect to new projects‚ acquisition of assets‚ raising capital‚ distributing dividends etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have positive effect on the profits‚ the decision is taken further for implementation
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Theories of Profit There are various theories of profit‚ given by several economists‚ which are as follows: 1. Walker’s Theory of Profit as Rent of Ability This theory is pounded by F.A. Walker. According to Walker‚ “Profit is the rent of exceptional abilities that an entrepreneur may possess over others”. Rent is the difference between the yields of the least and the most efficient entrepreneurs. In formulating this theory‚ Walker assumed a state of perfect completion in which all firms are
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Facebook Most of Facebook’s revenue comes from advertising. These advertisements are displayed in the sidebar of most pages of the site and they’re typically targeted to certain users. Some of the ads displayed are sponsored by major brand advertisers and some come from Facebook’s capabilities to target its users. Facebook is able to customize the ads based on the user’s metropolitan area‚ age‚ gender‚ school network‚ job‚ and even relationship status. Facebook also makes money through Facebook
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A01- Profit and Loss A profit and loss account is something businesses use to show them their revenue‚ costs and profits for that certain year‚ therefore showing the total amount of profit that the business has made that year‚ it is extremely important for the business‚ in particular for the accounts department who will refer to the profit and loss account a lot. This is because it clearly lays out what the business has spent‚ and what the business has brought in‚ it is easy for the business
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towards it that they spend most of their time socializing via facebook. - People meet new people; make new relationships through this network which increases the healthy interactions among them. Against - Individuals connect through facebook to their co-workers or colleagues which helps them to remain up to date. - Facebook is used to advertise products which are relatively new in the market and can be easily purchased through facebook. - It is good way to update people about the recent events
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1. [Sales Growth Rates‚ Sales‚ and Profits] Petal Providers Corporation opens and operates “mega” floral stores in the U.S. The idea behind the super store concept is to model the U.S. floral industry after its European counterparts whose flower markets generally have larger selections at lower prices. Revenues were $1 million with net profit of $50‚000 last year when the first “mega” Petal Providers floral outlet was opened. If the economy grows rapidly next year‚ Petal Providers expects its
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When Somebody Else’s Right-versus-Wrong Decision puts you in a Right-versus-Right Dilemma Robin L Heath John Brown University To steal‚ one takes property that does not belong to them‚ without permission‚ particularly when the property is taken secretly or by force (steal‚ n.d.). By placing the items in her backpack‚ and removing the items from the facility without authorization‚ Toni’s actions undoubtedly fit the definition of stealing. This is obvious unethical behavior‚ and
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Profit Maximization Marginal revenue is the change in revenue which comes from the sale of an additional unit of output. The relationship with total revenue is that total revenue is used in the formula to calculate marginal revenue. A company can calculate marginal revenue by dividing the change in total revenue with the change in output quantity. Because of demand‚ as production quantity increases the revenue per unit will decrease. On the other hand‚ marginal cost is the change in the total
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No Privacy on Social Media Every time a photo is taken or posted on social media‚ the government will have access to it. There are over 66% of American adults that use a social media account on a daily basis. This includes over 900 million posts a day on Facebook and over 340 million tweets per day on Twitter (Browning). Everyone wants to share what they are doing with their friends. American adults want their friends to see what they are doing and where they are at. Through the whole world‚ people
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Session 2 : Principles of Accounting and Financial Reporting - Chapter Two Quiz 1. Which of the following is a difference between financial reporting for internal service and enterprise funds? (Points : 10) Internal service funds are reported in the governmental fund financial statements. Internal service funds are reported in the proprietary fund financial statements. Internal service funds are generally
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