Name: Thuy Anh Nguyen November 6‚2012 1. Conditions for profit maximization are: a) Difference between total revenue (TR) and total cost (TC) is maximized; b) Marginal revenue (MR) should be equal to marginal cost (MC) Explanations: If we assume that the company is facing a downward – sloping curve and it produces just one single product a) Profit = TR – TC. Profit will increase if TR increases and TC decreases. If company wants profit maximization‚ it should be TR maximization and TC minimization
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Profits With no Cash University Dr. Sep 10‚ 2014 Profits With no Cash It is regularly a common thing in business to make profits without having any cash due to several aspects of business. This is happening by the non-cash flow adjustments that are recorded as transactions while no cash flows are involved. It is possible to make business transactions without cash involvement. In credit transactions‚ cash is not usually transacted but the transactions are usually recorded therefore if
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idea of my brother‚ insert name here‚ owning a business started in early March of 1998 when one of the neighbors jokingly suggested he should raise chickens and sell them to people. A few days later he realized it could be easily done‚ and with a profit. From mid-March to September‚ he and I raised‚ and easily sold 600+ chickens‚ we only wished we could have raised more. When March of 1999 rolled around we were contemplating how many chickens to buy‚ when the person we bought the chickens from
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payroll system. Gates and Allen soon got many opportunities to prove their computer skills. In 1972‚ they started their own company called ’Traf-O-Data.’ They developed a portable computer that allowed them to do analysis and prepare reports. This made them a sum of $20‚000. An entrepreneur has to have a persuasive style and possess good communication skills. This was a key factor in one of the turning points in Gates’ career‚ when at 25 he
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| | | | |1-2. |What effect did the recession of 2007–2009 have on government regulation? | | |
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Most writers of fiction do not earn enough money to live from their writing. Do you think the government should give them financial assistance to help encourage good literature? You should give reasons for your answer using your own ideas and experience. http://just-ielts.blogspot.com here are some conditions under which a novelist could reasonably expect some government suport. In general terms‚ if the writer has already proved that he or she can write well‚ and if the stories produced are stimulating
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Is Profit Maximisation always the major objective of a firm? The production of goods and services in our economy today takes place within organisations‚ whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements‚ goals and objectives is simultaneous through all businesses. Changes in these objectives can have forcible effects on the decisions
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The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. They exude that confidence in everything they do. Entrepreneurs who have no basis for their confidence are doom to failure. Perseverance‚ determination If you aren’t good at motivating yourself‚ you probably won’t get very far in business – especially as an entrepreneur. When you’re starting
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Economic Profit and Accounting Profit When it comes to business decisions‚ there are many ways to analysis the financial status of a firm. What guidelines determine profit margin? Who uses these guidelines? How is profit used to analysis a firm and its business decisions? This paper will discuss two terms that are used to define profit: accounting profit and economic profit. The first term is called accounting profit which uses the equa-tion. The second term for profit is economic profit. Economic
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SAMPLE ANSWER FOR QUESTION 5 Profit-making is one of the most traditional‚ basic and major objectives of a firm. Profit-motive is the driving-force behind all business activities of a company. It is the primary measure of success or failure of a firm in the market. Profit earning capacity indicates the position‚ performance and status of a firm in the market. In spite of several changes and development of several alternative objectives‚ profit maximization has remained as one of the single most important
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