Answer: The theoretical free-market situation in which the following conditions are met: (1) buyers and sellers are too numerous and too small to have any degree of individual control over prices‚ (2) all buyers and sellers seek to maximize their profit (income)‚ (3) buyers and seller can freely enter or leave the market‚ (4) all buyers and sellers have access to information regarding availability‚ prices‚ and quality of goods being traded‚ and (5) all goods of a particular nature are homogeneous
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The social responsibility concept is based on the premise that business has greater impact on society than can be measured by profit or loss. As a participant in society‚ business should contribute to the human and constructive social policies that guide society. The concept of social responsibility is merely a first step towards social effectiveness of business. It is the underlying value which gives businessmen a sound basis for social action. It is the philosophy which justifies business involvement
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Question 1 Examine BA’s Strategic decisions over the past 5 years and state what you consider to be the most crucial for the next 5 years. Give your reasons. The strategic decisions that they have taken for the last past 5 years can be given as follows. • A strong marketing campaign focusing on customer care. • Expanding their destinations & global connections. • Differentiated service levels that are offered to the customers. • Requirements & preferences for
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We then did negotiations with distributors to establish channels of distribution. The reason for this is that a company needs revenue‚ but more importantly‚ profit to survive‚ which can only be established with sales. By the third month‚ we had successfully established a channel of distribution‚ which was in our budget and produced good profits. We mistakenly forgot about the 30-day credit. We had consumed a majority of our capital‚ leaving us in money being owed to the bank. We therefore decided
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Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 280‚000 Cost of Pairs Sold 150‚000 Warehouse Expenses 15‚000 Marketing Expenses 35‚000 Administrative Expenses 8‚000 Operating Profit (Loss) 72‚000 Interest Income (expenses) (10‚000) Pre-tax Profit (Loss) 62‚000 Income Taxes 18‚600 Net Profit (Loss) $ 43‚400 Based on the above income statement data (assume interest income is zero)‚ the company’s interest coverage ratio is 28.0. 280.0. 4.34. 7.20. 6.20 2. Which
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The Body Shop Canada “You’re not the kind of franchise applicant we usually get‚” said Harry Robertson‚ company lawyer for the Body Shop Canada‚ as he opened his meeting with potential franchisee Richard Paul. “I suppose we’ll find out whether that’s an advantage or disadvantage‚” replied Mr. Paul. Mr. Robertson’s comment had taken Mr. Paul by surprise‚ and though he was pleased with his response‚ the comment had produced a sinking feeling in the pit of his stomach. Richard Paul Mr. Paul
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We delivered modest profit growth in a challenging economic environment‚ with a strong international performance largely offset by a reduction in UK profits. Whilst the year gave us many things to be proud of‚ overall it was not the most pleasing performance. My team and I are resolved to get Tesco back to winning‚ particularly at home. Group sales increased by 7.4% to £72 billion‚ while Group trading profit was up 1.3% on last year and underlying profit before tax rose to £3.9 billion‚ an
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the major problem with the bowling center which is that the profit pool is too low at the end of the year and that capacity and sales needs to be increased. Five alternative solutions are; more advertising‚ offering incentives to customers during slow hours to increase sales‚ use the extra space and rooms to generate income by renting that space‚ closing the business during slow times‚ put the business on the market to gauge potential profit from sale. In evaluating the alternatives we determine
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prices according to their costs always looking markup that has the market for a company to be competitive and attract more customers‚ because many companies only focus on attracting customers and do not mind getting a profit for it. They have to find a balance between its costs and profit margins. if companies are not looking for a good pricing strategy‚ the impact on their companies would be reflected in earnings. I recommend that you be always analyzing market trends‚ consumer reactions and the
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its sales volume and sales income are second-lowest in the industry‚ it has the highest profits‚ due to its high profit margins. Beaver is the industry’s largest company. It has the lowest prices and highest sales‚ but its profits are second to Acme’s. Canco is second-largest in sales but only third in profits‚ and is regarded as having fallen short of its potential. Deeco has the lowest sales and profits in the industry by far. Industry Sales Total industry sales have grown briskly over
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