the higher is the risk premium used to compute the firm’s value. b. larger the higher is the risk premium used to compute the firm’s value. c. the price for which the firm can be sold minus the present value of the expected future profits. d. both b and c 2 A price-taking firm can exert no control over price because a. the firm’s demand curve is downward sloping. b. of a lack of substitutes for the product. c. the firm’s individual production is
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world‚ one of the key objectives of starting a business is to make profit. While this might be true and important to every business‚ “most people believe that a business should not focus solely on profitability‚ but on the quality of products and services it offers to its customers”. This essay will discuss the various perspectives on the topic and will to a large extent agree with the view that businesses should not just focus on profit‚ by looking at customer desire for high quality product and their
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Chapter 6 Socio-Economic Aspect In putting business‚ owner should not only consider profit maximization but also the benefit it can give to the people and government. In order to help government attain its primary objectives of becoming newly industrialized country. The proponents decided to venture into this kind of business which is “Garlic Paste”. It is needed an eye not only from profits but also to perform social and economical responsibilities. A. Social Benefits JAIRISH
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triple-bottom-line outcome while others focus only on profit maximization? Please‚ use a real company example to illustrate your points. The triple bottom line outcome focuses on the concept where firms are environmentally conscious and socially responsible by achieving a balance between profits‚ avoiding damage to the environment‚ and achieving social benefits (Douglas‚ 2012). Traditionally‚ firms focused on profit maximization to achieve profits to pay out dividends and capital gains so shareholders
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The traditional profit maximizing theories of the firm have been criticised for being unrealistic. As a result‚ alternative theories of the firm were introduced (Sloman & Sutcliffe‚ 2001). One of the alternative theories of the firm is Growth maximization. Following are the main motives for the firms to grow: The cost motive: A growth maximising firm can lower its long run average costs by exploiting economies of scale and economies of scope. Economies of scale come into effect when increasing
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Profit Maximiser MR = MC An industry can be defined from two criteria: - similarity of products - similarity of economic activities A Sport industry can be defined as a cluster of firms that: - produce sport activities - provide products and services - trade and sell products Meeks ‘3-Sector’ Model of the sport industry: Sector #1: Sports Entertainment Sector #2: Sports Products Sector #3: Sports Support Organisations Li‚ Hofacre and Mahoneys ‘2-Sector’ Model of the sport industry:
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firms’ profits? If these two firms forms a cartel‚ they would jointly act like a monopoly. Profit maximization requires Due to symmetry‚ each of the firms is producing 12.1.2 Competitive market solution. Due to symmetry‚ each of the firms is producing 12.1.3 Cournot solution. Firstly‚ treat Shell’s quantity as given: (12.) For Caltex to maximize its profit‚ the FOC requires: (12.) Secondly‚ treat Caltex’s quantity as given: For Shell to maximize its profit‚ the FOC
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Primum Non Nocere: “Above all‚ not knowingly to do harm”‚ this have been a philosophy believe to be appropriate for professionals to take into harm. A manager is inclined with various responsibilities to his organization and his subordinates. Being a manager takes more than just control and a goal-oriented attitude‚ it is important that a manager does his action crucially and vigilantly. It is a basic rule of professional ethics‚ and that of which is public responsibility. To be oriented with
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as a whole because it can maximize its profit and it is the lowest in cost. 2 In what ways‚ if any‚ would you change Birch paper’s transfer pricing rules? The current rules are not ideal for the company as a whole. If Northern division were to buy without intervention from the VP‚ they would have accepted the bid from West Paper Company since that would result in the lowest cost for the division. However‚ this would not result in profit maximization for Birch Paper Company. The problem
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Chapter 2 Social Entrepreneurship and Innovation Profit focus vs Impact focus • A) organizations with no focus • B) organizations focused on achieving a purpose other than profit (old school not for profits) • C) organizations maximizing profits at the expense of other purposes (old school corporations) • D) organizations aligning purpose and profit maximization (new school entrepreneurs) Bottom of the Pyramid • http://www.youtube.com/watch?v=CPnx6gLcfK 4&feature=related • http://www.youtube
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