Questions On Financial Management For Profit

Questions On Financial Management For Profit
Angelic Anderson
BUS 4124
Final Exam
Fall 2016
1.
The difference in financial management for a for–profit and not–for–profit organization is the nonprofits
goal is the greater good and maintain satisfactory financial condition while for–profits' goal is to make
profit for the owners or shareholders. Both organizations have business actives as they make profit but in
the profit in for–profits are distribute profits to its owners or shareholders. Nonprofits are owned by the
public while for–profit organizations are privately owned meaning Nonprofits can't sell property upon
dissolution and must give it to a similar charity when it closes. Nonprofits don't pay taxes but still
required to fill out Form 990EZ while for–profit organizations pay taxes. We must also keep in mind
some organizations are both for–profit and public service as they strive to balance the goal of maximizing
profits and providing service to the public like for profit school and hospitals.
The fundamental accounting equation for balance sheet is Assets (resource)= Liabilities (claims by
outsiders) + equity (residual assets owned by owners) or assets (what you own)–liabilities (what you
owe)= equity (what you are worth). The reason why a balance sheet is balance because the two side of the
balance sheet is always the same amount as assets his on one side and liabilities and owner 's equity on
the other.
Financial statements are often referred to as checkbooks as the net assets changes in result of
... Get more on HelpWriting.net ...

Net Profit
LIVORIA SANDWICHES
November 14, 2013
STRATEGIC AND OPERATIONAL OPPORTUNITIES
FORECASTED YEARS: 2013 –2015
Prepared by Dev Das, CMA
Memorandum
November 14, 2013
TO: Paul and Sam Livoria
From: Dev Das, CMA
Subject: Strategic and Operational opportunities
Livoria Sandwiches faces major changes within the food industry in Dawkins. The city is in continuing
growth and expansion, being ranked as the fastest growing number of vegetarians in the country.
Currently Livoria faces a cash shortfall due to a lawsuit. The menu has to be adapted to the market
demand fast to keep up with the changes. The owners expressed the desire of having 1.1M in net profit by
2015. The goal can be reached ONLY by changing and ... Show more content on Helpwriting.net ...
Direct material is cheaper therefore a higher contribution margin can be generated.
Appendix 4 – changing the sale mix in favor of the sandwiches that bring more profitability per limited
resource, Livoria is going to be able not only to meet demand but it will meet owners preference of
minimum 1.1M by 2015 and increased cash flow. Changing the sales mix there are some aspects that
must be considered: contribution margin per limited resource and popularity of the products.
No capital investment is required.
Cons:
Sandwiches for which Livoria is well known for might disappear from the menu by 2015, (losses in loyal
customers). Veal cutlet sandwiches demand can be satisfied in proportion of 77% in 2013 [67,028/86,333
units], 90% in 2014 [78,710/87,283 units] and disappear completely in 2015 from the menu (app.4)
Limitation in number of employees Livoria can hire is a constraint against more growth possibility.
Livoria can satisfy only 83% of demand in 2013, 87% in 2014 and 70% in 2015. (app.4)
Livoria will change its current business success core (meat sandwiches) in favor of vegetarian one.
Risk: Direct material is more perishable and as main ingredients, quality is a key risk for business.
Alternative (c) – Franchise
Livoria could expand its business if it follows Paul

Advantages And Disadvantages Of Economic Value Adlating To...
COMPARING ECONOMIC VALUE ADDED FOR TOP 30 BSE COMPANIES
MINIMIZING THE GAP BETWEEN ACTUAL PROFITABILITY TO SHOWN PROFITABILITY
Anurag Krishnam
Birla Institute of Technology and Management
AUTHORS NOTE
Anurag Krishnam
Bachelor of Engineering–IT (Specialization in Multimedia)
Birla Institute of Management Technology (PGDM–International Business)
This Research was done under the guidance of Prof. Arindam Banerjee, FCMA CFP Faculty – Finance
and Accounting Birla Institute of Management Technology Plot No.5, Knowledge Park II ... Show more
content on Helpwriting.net ...
He talks about EVA and Problems relating to Profit–Based measurers. He demonstrates the calculation of
EVA along with all the Accounting Adjustments Required.
NICK RYAN (2011) in his second Paper talks about how to interpret Calculated EVA and its use both as
organizational performance measure and divisional performance measure. He also talks about various
disadvantages of Economic Value Added.
An article by Shane Johnson (2007), in this article he talks about Economic Value Added, Adjustments
required calculating EVA and Calculation of EVA. He has also talked about the advantages of EVA over
profit based measures used by companies over years and he talks how EVA helps in ending the confusion
of multiple goals for managers.
Andrew C.Worthington and Tracey West (2001) in there paper, they have done a synoptic survey of
EVA's conceptual underpinnings and the comparatively few empirical analyses of value–added
performance measures. They have focused on GAAP– related accounting adjustments involved in EVA–
type calculations.
In this present paper we have derived our process of calculation from above articles and papers and we
have done analysis on top 30 companies in Bombay stock exchange and we have calculated and
compared there EVA to

Profit and Loss Statement Paper
Justin Fondriest
Professor Timothy Groves
BSA/310
October 21, 2012
Profit and Loss Statement Paper
Before beginning, it should be noted that although this project is to be for a Profit and Loss (P&L)
Statement, only an Income Statement is available at the Kudler Fine Foods website (Apollo Group, 2011).
However, Income Statements and P&L Statements are, for all intents and purposes, the same thing.
With that said, it cannot be determined conclusively by reading the Income Statement for Kudler Fine
Foods if the report is monthly, quarterly or yearly–or if the reports are constructed on a different fiscal
schedule. The date at the top, however, reads "For the Year Ended December 31, 2003". ... Show more
content on Helpwriting.net ...
Now it is important to account for any other, miscellaneous income, such sales of assets and interest on
money in savings.
For Kudler Fine Foods, this amount is $7,845 (Apollo Group, 2011) and will be added to the income of
the company to reach a final, Net Income of $676,795.00(Apollo Group, 2011).
Conclusion
Kudler Fine Foods, though fictitious, is doing very well for itself–even when compared to a large
supermarket chain like Walmart. When dividing the Net Income of Kudler Fine Foods, $676,795.00, by
the company's Net Sales $10,796,200.00, we get a before–tax profit margin of 6.268%. This means that
Kudler Fine Foods has almost double the pre–tax profit margin than Walmart's post–tax profit margin of
3.515% (Ycharts, 2012). This means that unless the yearly taxes due for Kudler Fine Foods is about 50%,
they will likely have higher profit margins than Walmart. That is pretty good for a fictitious company...
References:
Apollo Group. (2011). Income Statement For the Year Ended December 31, 2003. In Kudler Fine Foods.
Retrieved October 19, 2012, from
https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/income–statement.asp
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2010). Understanding Business (9th ed., pp. 456–
471). New York, NY: McGraw–Hill/Irwin.

Ycharts. (2012, October 23).

Profit And Non Profit Essay
Profit and Non–profits organizations share the common goal of creating a product that will ultimately
generate a surplus. The uses of the surplus are where the two organizations differ. Non–profits
organizations take their surplus revenues to further achieve their purpose or mission often aligned with
some social challenge. Profit organizations take their surplus and distribute it to the organizations
shareholder's as profit or dividends. In order to be successful, profit and non–profit organizations need
have a strong marketing and public relations plan to ensure their organization is competitive and relevant
to the consumer not only today but in the future as well.
Statement of The Issue Organizations should maintain effective marking and public relations plans to
remain competitive and viable in a society that is consistently changing. It is important for an
organization to have a purpose that is focused on maintaining consumers for duration of times rather than
a short period until the next invention (Levitt, 2004). The issues is as new technology and invention
continue to be discovered organizations must ensure they have a broad definition of their organization and
maintain a close pulse of the customers needs to ensure the business grows with the needs of its
consumers in mind and not simply a product they are trying to sell (Levitt, 2004). One example of having
a broad definition for your organization is to think larger, rather than a cell phone company a company

Profit And Non Profit Organizations
Profit and Non–profit organizations make up the core of American business culture and charitable
services. Nonprofits organizations like The American Kidney depend on donations and grants from
individuals, government supplements, and corporations. For profit organizations like The Dallas Opera
depends on revenue from sales and contributions to meet the needs of their mission. While both The
American Kidney Fund and The Dallas Opera have different corporate cultures that require support from
outside sources, they each must display ethical values to support the financial needs of the institution; and
to the recipients of services provided. In this, both companies set a mission and company profile to
display to illustrate why their organizations are worthy of financial support and outreach from the
community.
The American Kidney Fund (AKF) was founded in 1971, to help any single individual with kidney failure
pay for dialysis. More than 40 years later, AKF has become the leading source of direct financial aid to
dialysis patients across the nation. The American Kidney Fund leads the nation in providing charitable
assistance to dialysis patients who need help with the costs associated with treating kidney failure. The
American Kidney Fund (AKF) is a major publicly supported 501(c)(3) non–profit organization. AKF is
provides treatment–related financial assistance to dialysis patients and for kidney disease education and
prevention programs. AKF provides grants that

The For-Profit Education Industry
For–profit education As with any business industry, the education industry is one big and diversified with
multiple options ranging from publicly own Universities, private nonprofit colleges to for–profit schools.
But today I am going to talk about specifically about for–profit educations. What is for–profit education?
What type of product and service do they serve and served? Who are the biggest players and how do they
affect the industry and control over price? What are the methods used? What are the barrier to entry and
exit? And last profitability. A brief history of For–profit education. For–profit education can be traced
back to the time of the founding fathers. In fact, Benjamin Franklin was a big advocate of For–profit
schools. ... Show more content on Helpwriting.net ...
Regarding with any business, there are many barriers to entry to the For–profit education industry. The
first and for most barrier to entry to the For–profit colleges and universities is Money. As reported by the
Slate for–profit colleges and university need "First, raise a lot of money. Without a pile of cash on hand,
[if not] you won't be able to pay faculty and staff, or buy land, buildings, and textbooks" (Beam). The
second barrier faced by For–profit industries is licensing and accreditation. According to the same article
on the slate "...Before a college can start accepting students, it needs a degree–granting license. Each state
has its own process, but usually you need to submit your university's curriculum to a committee for
review". And get an accreditation from both regional and national accreditation agencies. In the state of
Texas agency such as the Accrediting Commission for Community and Junior Colleges, Western
Association of Schools and Colleges (ACCJC) or at the national level you need an accreditation from
Accrediting Commission of Career Schools and Colleges (ACCSC). But at the basic level for–profit
industries need to according to slate "... meets a minimum standard for recognition by the Department of
Education. Without it, a school isn't eligible to receive federal funding nor can its students get Pell
grants..." (Which grant is the main source of revenue for the for–profit schools. Many more other more
seemingly small but incremental recognitions and requirements ranging from applying for copyright, tax
exemptions, financial plans, legal teams to applying the for the affix .edu. As to the exit, there is no such
barrier as my research conferred. As recently have seen on the TV, close your doors to a student as we
have seen on TV witnessed done by the ITT Technical Institute School which is one of the For–profit
College. Leaving as many as 40,000 students in

“The accounting profit figure is simply a measure of the...
"The accounting profit figure is simply a measure of the true profit of an organisation." Discuss.
In order to assess whether the accounting profit is a measure of the true profit it must first be shown that
there is such a thing as true profit. If we decide there is, we then need to know what it is exactly, in order
to assess the extent to which the accounting profit reflects this true profit figure. Before studying this
module I believed that the true profit was essentially the accounting profit calculated correctly. I saw
profit as being a simple calculation that would always return the same figure. As I didn't realise the extent
to which professional judgement is involved in reaching the profit figure I couldn't identify the ... Show
more content on Helpwriting.net ...
Therefore whatever true profit is, it is not the accounting profit, as I believed before.
1
Deegan & Unerman, Financial Accounting Theory, McGraw–Hill Education, 2011
Kvaal & Nobes, International Differences in IFRS Policy Choice (September 2, 2009). Accounting and
Business
Research, Forthcoming 2010. Available at SSRN: http://ssrn.com/abstract=1466693
2
I soon began to doubt that there even is such a thing as true profit. In the Hines article from the first
seminar Hines shows how accountants create reality when they describe it. In accounts objects only exist
once they are realised by the accountant3. Hines uses the example of revenue: "We recognise revenue
when it is realised. By naming it 'revenue', it becomes revenue.. Just like the black holes." Concepts like
revenue and profit are the creations of accountants. What they are depends on how you define them. With
real life objects (e.g. a chair), definitions may vary, however they are all based on the existence of the
same underlying object. With a concept like profit there is no object until it's fully defined. Once I fully
considered this the idea of true profit seemed strange. Profit was created as an accounting concept and
accountants decide what it is. Profit doesn't exist in reality outside accounting – there is no such thing as
true profit.
This idea was soon challenged in later seminars. Wagner argues that there is

Comparing For Profit and Non for Profit Colleges
Comparing Not–For– Profit and For Profit Colleges Colleges and university have slowly become one of
the stepping stones into the working world today. People go to colleges for higher education with the
intention of earning degrees in which they can use in their respective fields. Some example degrees that
people pursue are Medical, Law, Business, Accounting, and Science Degrees. Through the years the idea
of college was that it was optional and it was a door for better life and job. However in the modern times,
it become a necessity. It all started when the colleges once single– gender institutions target specific
students in their respective demographics. Today, the college market has now been divided into two major
categories: ... Show more content on Helpwriting.net ...
They are new students, enrollment, cost performance, revenue, net income, and cash flow. This way they
would also be able to measure the efficiency of their institution also. The goal for Not–For–Profit
Colleges is to provide students with higher education and help them advance in a particular field. Not–
For–Profit Colleges are traditional college such as community colleges, state universities, and liberal arts
colleges. These institutions gain funding to provide their services from the government subsidy, tuition
fees, and donations. All the income that are received is strictly used for institution purposes. Some
examples are professors, staff, maintenance, utilities, or even computers that the school needs and student
needs. All the money is given back to the institution in some way. The professors hired at a Not–For–
Profit College design their own courses and create their own course curriculum and lesson plan. They can
provide the education in their courses with their own individual styles and lesson plans. The professors
are under the guidance of the Board of Trustees, which is composed of different representatives that make
decisions for the college. Not–For–Profit colleges are mainly to provide education for the student who are
enrolled in their institution. The classes are usually on a campus in which the student spends a majority of
their time at. The board of Trustees focuses on improving their campus for the

Profit Vist Non Profit
Introduction Whenever looking at financials, a certain level of accountability and understanding is needed
to be able to have great measurability of success. That is the case for any individual especially when
applying this thought of rational to a business or corporation even more accountability, understanding,
and most importantly precision are needed to successfully bring in as well as continue financial
sustainability. When dealing within a corporation there are many levels to adhere to within the financial
everyday aspects of the corporation being ran with precision. So what happens when an organization is
not ran financially like a corporation yet deals with almost the same kind of aspects? A non–profit
organization can be one ... Show more content on Helpwriting.net ...
So how can that definition be taken in? Is a non–profit organization just a business trying to avoid paying
taxes? That could be the case though let us delve a little deeper.
Recognizing Non–Profit Organizations
Taking a look at non–profit organizations will breed a sense of familiarity. Five of the most known and
recognizable non–profits are National Public Radio (NPR), United Nations Children's Fund (UNICEF),
Human Rights Watch (HRW), Wiki Leaks, and Green Peace. These are all organizations we have come
across with familiarity, with maybe the exception of Green Peace. As any avid listener of National Public
Radio I can attest to the programs being run on the basis of callers calling in and pledging donations to
help keep certain programs as well as the station afloat. Some of these other organizations are also based
upon donation interaction, however, to label their financial situation as strictly donation base would be an
ignorant train of thought. All of these organizations do a great job acquiring revenue to help the operation
of the organization.
Financial Stability Being financially stable is an issue of any organization or corporation. This is an issue
touched on by Padilla, Staplefoote, and Morganti as they state the following "the definition of financial
sustainability may

The Cost-Volume-Profit Analysis
The cost–volume–profit analysis (CVP) is used to help companies determine breakeven points and
pricing for their products. It is a "method of cost accounting 在ased on determining the breakeven point
of cost and volume of goods" and is "useful for managers making short–term economic decisions"
(Investopedia, 2013).
The mechanism of CVP begins with the revenue, so the price point and the volume of units sold
(CliffNotes, 2013). A good way to understand the CVP analysis is using a simple income statement
example (Choo & Tan, 2011) The example that will be used here is a one–product small company Acme,
which makes ball bearings. The cost of producing one ball bearing is six cents. The objective for Acme in
using CVP analysis is to determine how many ball bearings it must sell at its normal price in order to
breakeven. Suppose its fixed costs are $100,000. If the normal price for a ball bearing is twenty cents that
is the variable cost. The contribution is the revenue variable cost, so in this case 14 cents. The breakeven
point is 100,000 / 0.14 = 714,286 ball bearings.
There are a few different ways that the company can gain competitive advantage using the CVP method
and the information that it generates about the business. The first thing the company can learn is with
respect to pricing. The company needs to sell 714,286 ball bearings, so it will only produce ball bearings
if it thinks that it can sell that many. If the company does not believe that it can sell enough

Game Theory and Profit
Chapter 11 Consider two firms facing the demand curve P = 50 – 5Q, where Q = Q1 + Q2. The firms' cost
functions are C1(Q1) = 20 + 10Q1 and C2(Q2) = 10 + 12Q2. a. Suppose both firms have entered the
industry. What is the joint profit–maximizing level of output? How much will each firm produce? How
would your answer change if the firms have not yet entered the industry? If both firms enter the market,
and they collude, they will face a marginal revenue curve with twice the slope of the demand curve: MR
= 50 – 10Q. Setting marginal revenue equal to marginal cost (the marginal cost of Firm 1, since it is lower
than that of Firm 2) to determine the profit–maximizing quantity, Q: 50 – 10Q = 10, or Q = 4.
Substituting Q = ... Show more content on Helpwriting.net ...
Also calculate its profits. The monopolist wants to choose quantity to maximize its profits: max = PQ –
C(Q), = (53 – Q)(Q) – 5Q, or = 48Q – Q2. To determine the profit–maximizing quantity, set the change in
with respect to the change in Q equal to zero and solve for Q: Substitute the profit–maximizing quantity,
Q = 24, into the demand function to find price: 24 = 53 – P, or P = $29. Profits are equal to = TR – TC =
(29)(24) – (5)(24) = $576. b. Suppose a second firm enters the market. Let Q1 be the output of the first
firm and Q2 be the output of the second. Market demand is now given by Q1 + Q2 = 53 – P. Assuming
that this second firm has the same costs as the first, write the profits of each firm as functions of Q1 and
Q2. When the second firm enters, price can be written as a function of the output of two firms: P = 53 –
Q1 – Q2. We may write the profit functions for the two firms: or and or c. Suppose (as in the Cournot
model) that each firm chooses its profit–maximizing level of output on the assumption that its
competitor's output is fixed. Find each firm's "reaction curve" (i.e., the rule that gives its desired output in
terms of its competitor's output). Under the Cournot assumption, Firm 1 treats the output of Firm 2 as a
constant in its maximization of profits. Therefore, Firm 1 chooses Q1 to maximize 1 in b with Q2 being
treated as a constant.

Profit Maximization Model
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 objectives of the firm even today.
Both small and large firms consistently make an attempt to maximize their profit by adopting novel
techniques in business. Specific efforts have been made to maximize output and minimize production and
... Show more content on Helpwriting.net ...
They are as follows –
1. Profit maximization is the main goal of the firm.
2. Rational behavior on the part of the firm to achieve its goal of profit maximization.
3. The firm is managed by owner–entrepreneur.
Determination of profit – maximizing price and output
Profit maximization of a firm can be explained in two different ways.
· Total Revenue and Total Cost approach.
· Marginal Revenue and Marginal Cost approach.
Profits of a firm are estimated by making comparison between total revenue and total costs. Profit is the
difference between TR and TC. In other words, excess of revenue over costs is the profits. Profit = TR –
TC. If TR is equal to TC in that case, there will be break even point. If TR is less than TC, in that case, a
firm will be incurring losses. In this case, we take in to account of total cost and total revenue of the firm
while measuring profits.
It is clear from the following diagram how profit arises when TR is greater than that of TC.
2. MR and MC approach
In this case, we take in to account of revenue earned from one unit and cost incurred to produce only one
unit of output. A firm will be maximizing its profits when MR= MC and MC curve cuts MR curve from
below. If MC curve cuts MR curve from above either under perfect market or under imperfect market, no
doubt MR equals MC but total output will not be maximized and hence total profits also will not be
maximized. Hence, two conditions are

Profit Versus Not-for-Profit Hospitals
Profit Versus Not–for–Profit
Hospitals
In Partial Fulfillment of the Requirements for
Health Services Systems
HSM 541
Blaise X. Schmidt
DeVry University
Keller Graduate School of Management
September 2012
1.0 Purpose
The purpose of this paper is to conduct a comparative analysis between for–profit hospitals and not–for–
profit hospital. It will discuss the characteristics of each as well as factors affecting the operations of both
systems. Additionally, it discusses potential areas of improvement and some of the challenges associated
with each relative to finance and operations.
2.0 Comparing Not–for–Profit and For–Profit Hospitals
Not–for–profit hospitals are organized under the Section 501 (c)(3) ... Show more content on
Helpwriting.net ...
It is also possible that a nonprofit hospital, especially in a large city, may be busier at any given time than
a for–profit hospital. To get an idea of what a large city's nonprofit hospital is like, you can recall the
television show "ER," which was set in a nonprofit hospital. By treating everyone regardless of ability to
pay, nonprofits provide a needed service (Writing, 2012). The IRS interprets this reasoning in their
rulings.
Another term often used with both not–for–profit and for–profit hospitals is uncompensated hospital care.
With not–for–profit and for–profit, revenues come from daily operations. What happens if a person
cannot afford the care in a not–for–profit hospital? Regardless of the type operation, hospitals must

stabilize the patient and transport to a public hospital, even though they are not required to treat these
patients. This uncompensated care is classified as uncompensated care, bad debt, or charity care. For–
profit hospitals write off this bad debt and use these figures to offset their profits and to assist in
developing their costs to Medicare and Medicaid programs.
Public not–for–profit hospitals are dependent upon tax–based support for their government sponsors and
from patient revenues. Capital budgeting can be financed through government bonds that must be voted
upon during elections. Under these circumstances, it is difficult to maintain current equipment and capital

Profit vs Non Profit Hospitals
Profit vs. Non Profit Healthcare Organizations
Prepared By: Milton Flores
Table of Contents
I.
Introduction......................................................................................................................................................3
II. Definition of Non Profit Health Care
Organization.....................................................................................4
III. Definition of Profit Health Care
Organization.............................................................................................4
IV. Issues facing Non Profit and Profit Health Care
Organizations................................................................5
V. Options to improve
operations......................................................................................................................6
I. Introduction
The debate on whether all healthcare institution should be non–profit rises many issues and they have
been heavily debated. The best way to examine this to analyze if non–profit hospitals are in fact better
that for ... Show more content on Helpwriting.net ...
Non profit health plans are estimated to serve over 40% or more of all private health insurance enrollees.
Nonprofit health care organizations are primary responsible and accountable to the communities and
populations they serve. They are legally and ethically bound to do good for the benefit of their
communities. Their governing bodies are comprised of leaders from the communities they serve. The
earnings and reserves of nonprofit health care organizations are reinvested to benefit the community.(1).
III. Definition of Profit Health Care Organization.
For– profit health care and organizations have a misconception that this automatically means higher costs
and a lower level of quality. There are several studies that directly contradict this assumption. In a study
that was conducted by Blue Cross, the findings showed that there was not an increase in costs and that
there was not a negative effect on the availability of health care.
For profit providers look at health care as a business, with a financial bottom line producing profits that

can be distributed to shareholders. Supporters of for–profit health care say that increased competition can
produce a more efficient, effective, less expensive health care system. Since the 1980s, for–profit health
care facilities have proliferated, including national hospital chains, health plans,

Advertising Should Increase Profits Overtime
1. (a) The advertising campaign that increases sales significantly would increase the value of the firm.
This is the case because the more sales a firm has the more profit it can make. It can also raise the price
per item being sold as there is a high demand for the item. However, this value increase might be short–
term and the firm should avoid making any drastic changes. According to Nariman K. Dhalla, advertising
should increase profits overtime, managers should use advertising as an investment to evaluate customers'
buying tendencies by analyzing the firm's past performance (1978). Therefore, to secure an increase in
profit, the firm would need to note the advertising campaigns that have worked and change them to keep
up with the changing customer.
1. (b) When a new firm enters the market, it creates a competition with the existing firms. The existing
firm's value could decrease if the new firm has a better product, a cheaper product, or in the sole fact that
it is new and people like having the newest products. However, this is not always the case. If the existing
firm has a loyal customer base or a product that is of excellent value, the firm's value might stay the same.
As Calma Carlo writes, existing firms have an advantage on new competition because the customers are
familiar with the firm, the product, the store, its employees, and the environment as a whole (2014). As
this points out, the new competition might not affect the value of the firm drastically as the

Essay about Profit Mazimization for Puff Shoes
Case Study
Profit Maximization
For
Puff Shoes
Introduction
Company Background
Puff shoes is a small enterprise which comes under the MSMEs or the Micro, Small and Medium
Enterprises and deals with footwear production under its own 'Puff' brand and as third party
manufacturers for other prominent brands through the outsourcing of manufacturing by major footwear
brands. It has a turnover of about INR 2.78 Cr. Since the commencement of Operations in 1996, Puff
shoes has progressed impressively to becoming a reputed footwear manufacturer in the Delhi(India)
region where the factory and office are located. Puff shoes is accredited with having processed orders of
international footwear brands such as Nike and Fila. It specializes ... Show more content on
Helpwriting.net ...
Executive Summary
Main objective of this case study is to optimize the functioning of the Puff Shoes manufacturing unit with
the objective of maximizing profit through the optimal order and resource allocation to the three
production units (machines) while ensuring that the demand is met in a timely manner.
The scope of the case study is limited to the manufacturing unit of Puff Shoes in Delhi which contains 3
machines for the production of footwear of various sizes.
Problem Description: It is focused on the aspect of creating a model that would allow for the optimal
allocation of resources to each of the 3 machines in order to maximize profit in the long run. The model
also hopes to ensure that maximum order deadlines are met in a timely yet profitable manner without
compromising on the quality of the product.
Tool Used :–Excel Solver is used for modeling Linear Programming Problem and solving them Data
Analysis
The following data was collected from the company:
Number of machines = 3
NOTE: In this case study, I have named the machines Machine 1, Machine 2 and Machine 3, where
Machine 1 has the highest capacity, followed by Machine 2 and Machine 3.

Profit Is Not The Purpose Of Enterprise
Profit is not the purpose of enterprise
Introduction
Many people mistakenly think that the purpose of the company is simply to make money. In fact, profit is
actually just an important result of the existence of a company. The real reason for company existence has
to be further studied. Companies need profits, but more importantly they must have the social
responsibility. Companies have a great responsibility to their employees, customers, suppliers and the
general welfare of society, as well as the ecological environment. It inevitably comes to a conclusion that
the existence of the company is to be able to complete a work which cannot be done by one person. It
actually is a kind of contribution to society. But now, it can be seen that ... Show more content on
Helpwriting.net ...
For one hundred percent of the profits, all human laws will be trampled by these capitals. If there are
three hundred percent of the profits, any crime will be committed, even with the risk of strangulation
(Marx, Engels, & Levitsky, 1996). For example, before Enron declared bankruptcy in 2001, it had about
21,000 employees and was one of the world 's largest electricity, gas and telecommunication companies.
The company had been named as "America 's most innovative company" by Fortune for six consecutive
years. But the real cause of Enron famous in the world was financial fraud scandal which made this
company with hundreds of billions of assets in bankruptcy within a few weeks (Cahan & Zhang, 2005).
Therefore, it can be seen that the pursuit of profit as the purpose of the enterprise inevitably causes the
emergence of various cases of unsustainable development, thereby harming the enterprise, society, the
community, the environment and the staffs.
The purpose of business is to provide goods and services, thus contributing to society. Despite obtaining
profit is not a fundamental purpose of business, profit and purpose are not in confrontation. There are
correlations between profit and purpose.
First, profits are the result of corporate contribution to society. If the business provides the community
with the necessary products and services in an efficient way, then the business will earn profits.
Therefore, profit is

Advantages Of Economic Profit
1.0 INTRODUCTION
In finance, the proposed objective of the firm is the maximisation of economic profit. This 'maximising'
objective is expressed in terms of the market value of the firm's shares. These notions should not be
confused with accounting profit which usually attempts to match periodic revenues and expenses as well
as other concepts. As a result, accounting profit is somewhat arbitrary and fails to take account of all
factors which affect shareholders' wealth.
The discussion on the forms of corporate organisations revealed that, there are a number of advantages
that investors and owners derive. What business firms are seeking to achieve and therefore what
investment and financing decisions should seek to promote is a question central to business finance and
one which has attracted considerable discussion as the subject has developed ... Show more content on
Helpwriting.net ...
However, maximization of profit is far too broad a definition of what is likely to be beneficial to
shareholders.
2.1 Why is profit maximisation not the best operational goal?
Emery and Finnerty (1997) posit three important reasons why profit maximization is not the best
operational goal. First, profit maximization is vague. Profit has many different definitions. Do we mean
accounting profits (based on book values) or economic profit (based on market value and beyond a fair
return)?
Secondly, profit maximization ignores differences in when we get the money. Profit maximization does
not distinguish between getting a cedi today and getting a cedi in the future, such as a year from today.
Third, profit maximization ignores risk differences between alternatives. When given a choice between
two alternatives that have the same return but different risk, most people choose the less risky one. This
makes the less risky alternative more valuable. Profit maximisation ignores such differences in

Essay For Profit vs. Not for Profit Organizations
For profit vs. not for profit organizations Melinda Colp AIU Online Healthcare Administration HCM630–
1203D–01 Professor Michael Schmitt September 16, 2012 Non–Profit healthcare organization vs. for–
profit healthcare organization "Hospitals can be non–profit, for–profit, and government–owned and/or
operated" (Baker & Baker, 2006). There are different terms for each classification in how to report and
handle the finances but the basics are the same for any type of business. Business finances require the
following basic fundamentals: creating "budgets, understanding capital expenditure, loan acquisition, and
financial fees" (Baker & Baker, 2006). Government owned and operated hospitals offer unprofitable
services; which ... Show more content on Helpwriting.net ...
Non–Profit hospitals can often assist potential patients to care for the uninsured in their community
(Kovner & Knickman, 2008). Disadvantages for non–profit hospitals is they are not owned by anyone;
meaning that some non–profit hospitals may not be able to afford all of the latest technology or
sometimes offering the cost–effective services when operating in lower–income areas. Non–Profit
hospitals have "higher operating costs because of a high amount of uncompensated care and the charitable
component of their operations" (Kovner & Knickman, 2008). One of the Florida's largest hospitals is in
Lakeland, Florida. Lakeland Regional Medical Center (LRMC) is a not–for–profit healthcare facility that
is licensed for 851 beds and has served Lakeland and the surrounding communities for more than 80
years. LRMC is fully accredited by the Joint Commission on Accreditation of Healthcare Organizations.
LRMC's vision is creating the best healthcare experiences for each patient. "Lakeland Regional offers
some of the most comprehensive and sophisticated care available, from early detection and education
programs, to primary and specialized care" (LRMC2012). LRMC's has a wide scope of specialized
medical services such as the heart center,

Who Is The Bottom Line Of Business Is Profit And Profit...
Running Head: IS IT TRUE THE BOTTOM LINE OF BUSINESS
Is It True That The "Bottom Line" Of Business Is Profit and Profit Alone?
Helen Steinhofer
American InterContinental University
PHIL201–1603A–03
07/21/2016
Abstract
This will be an over view of ethics as it relates to business in our society. Concepts from Philosophy will
seek to describe the correlation between actions that are classified as morally right or ethical in our
dealings with each other as human beings. Clear and concise examples will be given as well as ways in
which to improve upon business ethics.
Can business thrive by profit alone? Barry (2000) described Milton Friedman's short essay, in the 1970's,
as extremely controversial, in which he denied that corporate executives had any moral duty to relax the
conditions of profit maximization on behalf of the wider interests of society. This example of the "bottom
line" of business has been demonstrated within the past couple of decades by publicly criticized
companies, for fraudulent activities, such as, Enron, WorldCom, and HealthSouth along with many
others. These company executives were willing to sacrifice the vast majority and greater good of society
for profit gains. This mindset left many of loyal investors, consumers and employees without a sound
stabilized future. There are also many businesses that produce a high yield on their investments;

What is Accounting Profit?
Based on my understanding, accounting profit is a measure of the profit or loss of the
Company. It's simply, total income minus total cost.
I agree that accounting profit provides a good starting point to evaluate a company's performance during a
particular period. Many people tend to assume a company is doing well if it is profitable and invest in it
as long as income statement shows net profit without considering other indicators such as accounting
ratios and cash flows. However, I am unsure how reliable it is in indicating a company's true profitability.
Accounting profit figure may not be comparable between companies due to the subjectivity involved in
management estimates and accounting policies. For example, amortisation, valuation and fair value
adjustments are subjective. Additionally, creative accounting may also cause profits to be managed and
inflated. For an example, Starbucks avoid paying tax in the UK for 3 years.
Accounting profit also do not take into consideration all cost, such as opportunity cost of cost of equity. A
company with high equity may report a higher accounting profit than a similar company with higher debt.
Therefore, I highly doubt if accounting profit can be considered as a measure of true profit.
Part 2
Accounting in Context (AIC) module cleared my doubts I had in Part 1 of this essay. AIC gave me a
clearer picture of profit and accounting as a whole. Profit is the outcome of a particular accounting rule
and not just a

Business : Biblical Values And Analyze How Productivity,...
I am not terribly involved in stocks, Wall Street, or international trade. The only news I receive about
business is when a non–profit is funded or corruption is discovered in a major corporation. Reading
Grudem's book gave me insight into issues businesses face, both internally and externally. His book also
claims that every aspect of business is fundamentally good from a Biblical standpoint. The purpose of this
paper is to evaluate business under Biblical values and analyze how productivity, profit, and competition
can be used and misused in Biblical context.
By the definition Merriam–Webster provides, business is defined as, "the activity of making, buying, or
selling goods or providing services in exchange for money." Business present–day is indeed profitable;
albeit riddled with pitfalls. However, from a Biblical stance, an important matter is how that wealth is
attained and handled. Luke 16:11 offers a good perspective on this wealth compared to true wealth from
God. Luke emphasizes trustworthiness handling worldly wealth in preparation for true riches. (Luke
16:11 NIV) Through reading Business for the Glory of God, Grudem is focused much more on the
making, buying, and selling aspects of business more than the profit it generates. Creating, buying, and
selling are all topics spoken about in the Bible. Each of these began as a gift from God and have become
sullied by sin.
Business involves many "grey zone" ethical choices, and the morality of business is heavily

Essay about Profit Center
The TallTree2 Hotel Casino is a 640–room resort complex featuring a full range of Nevada–style gaming
with slot machines and table games. Besides the hotel and casino, it also operates four restaurants, two
entertainment showrooms and three gift shops. Because of the economic environment at the time,
TallTree2 wanted to improve its bottom line by launching a range of Special Events like golf
tournaments, boxing matches, New Year Parties and a series of pit, keno and slot tournaments. Those
special events were specifically designed to compensate for the slow periods and generate additional
gaming revenues.
Terrence Wei, the new property president, feels that his department managers appear to be in conflict with
each other. The managers ... Show more content on Helpwriting.net ...
The company is decentralized and each department is a responsibility center. A responsibility center is a
division of a company for which a manager has the authority to make decisions. The main types of
responsibility centers are cost centers and profit centers.
A cost center is a division of a company that is responsible for the keeping the costs as low as possible.
Cost centers contribute to a company's profitability indirectly like marketing, customer service or research
and development.
A profit center is a division of the company that is accounted for on a standalone basis for the purpose of
profit calculation. The managers of those profit centers have the decision–making authority related to
product or service pricing and operating expenses. Therefore, the profit center is responsible for making
its own earnings.
The goal is to reorganize the allocation of costs so that each segment is profitable. The special events
target high rollers and should bring more money that they currently bring.
The Casino department should still be run as a profit center. Gambling is the largest source of revenue for
the hotel casino complex. The department manager controls the revenues by offering special promotions
and complimentary food, beverages and rooms in times of slow periods. The manager is not only
responsible for the profit generated but also for the costs.

Profit Maximisation
In this essay I have been asked to carry out basic research for Shamrock Components Plc by using
theories I will assess the factors that would influence the decision of the senior managers and whether
they should join the joint venture or not.
Profit maximisation
Profit maximisation is the process by which a firm determines the price and output level that returns the
greatest profit. There are several approaches to this problem. The total revenue – total cost method relies
on the fact that profit equals revenue minus cost, and the marginal revenue – marginal cost method is
based on the fact that total profit in a perfectly competitive market reaches its maximum point where
marginal revenue equals marginal cost.
Basic definitions ... Show more content on Helpwriting.net ...
Shamrock should think about their sales revenue maximisation more than the profit maximisation, to
make more profit it would mean higher prices and lower costs, which all depends on the variable cost as
this is very hard to reduce if you are producing more products, to gain reputation and sales product
quality has to be the best standards so customers are happy with the product quality and repeating
business with Shamrock, increasing sales revenue would mean advertising and selling your product at the
right price to gain more sales. Higher the sales are more the profit Shamrock will be making, but there has
to be minimum amount of profit for Shamrock so if they decide to join the other three company's then
they can show what the company is saving and what the profits are.
Every manager of the company would like to gain better reputation for the company and to be known for
something good, their job is to improve the customer service and provide the

7 Strategies For Making Profit On Amazon
Struggling to find your e–commerce Niche: 7 strategies for making profit on Amazon
My first transaction with online selling was when I decided to dispose off my vacuum cleaner which was
as good as new.I didn 't go about it with a strategy but still generated some profit.That 's when I realized
that eCommerce is a great platform and can make you a lot of money if used wisely. Here are some of the
very basic tips that a lot of sellers ignore and hence end up stacking piles of inventory that never get sold.
1.Identify the need
There are thousands of customers buying stuff on Amazon regardless of any pushy marketing techniques.
It's only because they have a desire to own things and not because they are influenced to buy them. Your
job is to ... Show more content on Helpwriting.net ...
I normally try to find a local supplier as a backup for timely delivery. It 's important to have multiple
backup suppliers.
3.Diversifying products
Once you explore different niches and finalize your product line, make sure you cover multiple products
related to that niche. If you already found good suppliers and demand for a craft product, try to include a
variety of products that come under arts and craft. You can't just rely on one product that has generated
profit. Buying patterns are random and you never know when the sales may decline. It's beneficial to
diversify not only because you can't rely on a single product but also because your customers may end up
adding on an item from the same seller.Add on items like mouse and keyboard most definitely generate
some extra revenue with a laptop.
4.Recording Ideas
In order to remain on the top you need to know what's going on in the market, what are people looking
for. If you start recording every detail that may hint towards a potential best seller, and immediately work
on researching the right suppliers, there are more chances of discovering a profitable niche rather than
blindly following what's already selling in the market by the big players. Record all the ideas that you
brainstorm in your notes even if they may seem silly. You never know how multiple ideas may connect to
form a totally unique concept.
5.Under

The Fortune Bottom Pyramid: Eradicating Poverty Through...
The Fortune Bottom Pyramid: Eradicating Poverty through Profits", C.K Prahalad Introduction In
economics, the bottom of the pyramid is supposed to be the largest, but at the same time it is the group
that is very poor socio–economically. In global relations, this is somewhere around the 2.6 billion people
that are living on less than US$2.50 per day. The expression "bottom of the pyramid" is a term that is
always used in specific by persons evolving new models of doing business that purposely aim for that
demographic, usually by utilizing technology that is new (Friedman, T.L.,2000). This arena is also
frequently mentioned to as the "Base of the Pyramid" and some may also know it as the "BoP". Many
books and numerous journal articles have been written on the possible marketplace by associates of
business schools proposing consultancy on the mushrooming marketplace (Gardetti, M.A.,2005). They
include The Fortune at the Bottom of the Pyramid by C.K. Prahalad which is what this essay will explain.
Description The term "bottom of the pyramid" was utilized by the united .States. president Franklin D.
Roosevelt in during a radio event in April 7, 1932, The Forgotten Man, where he mentioned "These times
that are not too happy call for the constructing an agenda that will rest upon those that have been
forgotten, those that are considered to be unorganized however, the essential components of financial
power that are building from the bottom up and not from the top down, that

Is Profit Or Csr The Main Driver For A Profit Business?
Is Profit or CSR the Main Driver for For–Profit Business? At the very heart of defining a business, the
executive leadership must first understand what products and services will the business bring to its
customers; understanding what the consumer values is a key component in product and services
development. The executive team also must understand other stakeholders and shareholders, and how it
will operate in order to create profit while also meeting the shareholder and stakeholder expectations. At
the heart of the matter is how leadership views profit. Is the company in existence to make a profit or to
maximize profit. According to Northrop, profit maximization directs all firm behaviors towards making
as large a profit as ... Show more content on Helpwriting.net ...
As part of product and service creation, successful companies spend significant energy understanding the
end users value proposition to ensure the product will create value the consumer is willing to pay for
(Expressive Product Design, n.d.). During this initial market and product research phase, the company
and the consumer are working on the definition of shared value for the product. By adding sustainability
as a core value as part of the product definition, the product can be created to meet the customer need in a
way that is also valuable for the company to produce (Williams, 2014). Even Adam Smith acknowledged
that human beings are self–interested, but also containing "sympathy, empathy, friendship, love, and the
desire for social approval" (Williams, 2014, p. 11). Therefore both profit and social approval are
intertwined when creating products consumers want. Embedding CSR in with how products are created
ensures a scalable model for accommodating both profit and CSR. A company realizes profits from two
activities, increased sales units with reduction of costs. The stakeholders that allow a company to do this
are the internal employees to the company, and the businesses the company partners within their product
supply chain. Lean development methodologies are common in manufacturing due to the relentless focus
on continuous improvement, and efficient manufacturing practices while

The Gross Profit Margin Ratio
The Gross profit margin ratio is a measure of profitability concerned with the effectiveness of generating
profit. It represent the relation between the gross profit and the sales revenue generate in the same period
(McLaney and Atrill, 2012). The higher of this ratio is better for the company. The Dixons´ gross profit
margin is virtually the same in both years, 2013 is 7,32% and 2014 is 7,47%. However, it is too low to
compare with the industry average ratio (15%). It should be as a consequence of the high cost of sales.
Reducing the cost of the goods sold is an immediately measure that the company must implemented.
Additionally, increasing the price of the product should be another alternative. These changes will reflect
positively in the profit of the year leading to a higher gross profit margin.
The current ratio is a measure of liquidity, which is concerned with the ability of the company to meet its
short–term financial obligations. It relates the current assets and the current liabilities of a business the
higher the ratio means that the business have more liquidity and quickly response to financial obligations,
however is not recommended to be too high (McLaney and Atrill, 2012). The Dixons´ current ratios in
both year are significantly lower than the industry average which is 2.05 times, in 2013 is 0.89 and during
2014 is 0.93. These results lower than 1, is an evidence of a problem in the liquidity of the company and
the difficult for Dixon to meet its

Fishing for Profit: Turning a Hobby into a Business
Fishing for Profit: Turning a Hobby into a Business Introduction When I was about two years old, my
grandfather took me on my first of many fishing trips. He had a small lake near his house, which was
stocked with fish. Each evening when he would get home from work, my grandmother would have snacks
and drinks prepared, and he would come home to get her, and the two of them would go fish for an hour
or so. It was how he relaxed after work in the evenings. When his grandchildren visited, we went along
with him. He gave each of us our own special fishing poles, and he taught us everything about fishing,
from how to set up our poles to how to bait our hooks, and eventually how to clean fish. As I grew older,
our fishing trips expanded from hour–long visits to a local lake to trips to the coast, where we would go
on deep–sea fishing expeditions. He found relaxation and peace in the hobby, and, as I grew older, it
became my favorite way to relax as well. I have decided that there is no reason that I cannot turn this
hobby that I love into a profitable business, and have decided to become a deep sea fishing guide.
Type of business The type of business that I intend to start is called a charter fishing boat business. I
intend to run the business out of Galveston, Texas, a coastal city located near the Houston metropolitan
area in Texas. The business will begin operating with two fishing boats with a total passenger capacity of
6 guest fishermen in addition to a captain. One

Cost Proposal-For-Profit Is Not-For-Profit
This paper will show the expense and revenue for the Help Hope Live charitable organization. This
organization had its beginning in 1982 and has a mission to help individuals with organ, stem cell or
tissue transplant expenses. It also helps with catastrophic injuries and diseases.
This report will also show if Help Hope Live complies with the FASB's SFAS 117 ruling. Looking at the
last three years of financial statements will also show profitability, liquidity and capital financial ratios.
This chart shows that funds from United Way and donated services are the smallest part of revenue
received by this organization. Grant funds are more than 25% of the revenue and an important part of the
mission. Writing grant proposals and submitting ... Show more content on Helpwriting.net ...
This keeps the endowment producing income and restricted as a fund that needs board approval to move
over to the unrestricted area.
Looking back at the statement of financial positon for 2013, 2014 and 2015 shows increases each year in
the revenue. Investments over this period have increased by 2 million. Equipment and improvement
expenses have gone down. In 2013 the expense was over 300k. 2014 and 2015 were much smaller around
10k. 2016 jumped up to just over 200k. This shows that attention is being paid to improving the office
and equipment and staying up to date with technology.
A steady increase in the investments is an advantage as the future contributions may not be sustainable.
Economy or disasters could impact donations. Earnings from the investments will help each year as the
mission is accomplished and can be added to donations to help more individuals.
Conclusion This is a transparent organization that has been saving lives and families for decades. It has a
large board of directors with impressive resumes. It also appears to have dedicated employees and
motivated management. Charity Navigator rates this charity at 100% for accountability and transparency.
(Charity, 2017)

For-Profit Vs Non Profit Hospital Essay
The largest health care organization in the United States are hospitals. For–profit is an organization that
operates to make a profit while a non– profit organization makes no profit. Charities and organizations
reported that, 62% of the U.S. hospitals in 2003 are non–profit. Non–profit hospitals gain tax–exempt by
meeting the state and federal guidelines provided, while for–profit doesn't get these tax. The non–profit
hospitals serve as charitable purpose for the community and are sometimes larger than the for–profit
hospitals. Private hospitals may either be classified as non–profit or for–profit institutions. According to
Charities & Organizations, non–profit hospitals provide greater proportions of uncompensated care than
for–profit hospitals. Uncompensated care is not carried by all nonprofit hospitals. Nonprofit and for profit
hospitals are different and offer different types of services .Services like high–level trauma or intensive
care burn wards are ... Show more content on Helpwriting.net ...
The high cost of health care that we are currently experiencing in the United States was not as much of an
issue when most of these organizations and health care plans were established. The rise in health care
since he 1980's has been the reason that many have switched to for–profit. If they did not switch, many
would have not been able to still function and provide services. It is vital to realize that nonprofit health
care providers have a mission of serving people and providing services without regard for a patient's
ability to pay. The financial part is that the way nonprofit is able to do this is to charge more to patients
who are able to pay in order to offset cost. In contrast, for–profit views health care as a business. But, it is
because of this very factor that profits are recognized which in turn helps to keep cost down for all not for
a select group

Betty's Pie Whole: The Profit Season 3 Episode 13
Betty's Pie Whole – The Profit Season 3 Episode 13.2
In this episode of The Profit, Marcus Lemonis visits Betty's Pie Whole. Betty's Pie Whole is maker of
savory and sweet pies. Elizabeth "Betty" Harris–Hunt owns the company and serves whole, no slices pies.
This southern lady wants her customers to have it all and allows them to have better portion control.
Betty's Pie Whole uses real fruit that are prepared by the staff. The company never use canned or pre–
made pie fillings. Betty's Pie Whole uses premium chocolate, local eggs, pure butter, and real cream. The
high–quality ingredients make all the difference.
Betty's Pie Whole was doing great and has a solid following. But things get bad when she opened her
second location, which she named ... Show more content on Helpwriting.net ...
He brought his trusted professional kitchen designer and introduced to Betty. New design was planned
and the renovation started. Marcus was dismayed that Betty was not making the recipe. The written recipe
will help the staff make the pies themselves and increases the productivity as well as the consistency.
Marcus brought Betty to Elizabethan Desserts to tell her that the bakery should be closed. It was hard for
her since she believes it has a big potential. But Marcus reminded her about focus and letting go. She
finally embraced the idea. They also settled the ice cream issue and let other company make it for them so
Betty's Pie Whole focuses on pie alone.
Conclusion
Everyone in Betty's Pie Whole is glad with the huge change. People are more productive and the work
process runs smoothly. Marcus was so happy to see the people functioning well and very energized. The
new tools helped in the production and efficiency.
Betty finally organized the recipes and compiled them neatly on several books. She now listens and trusts
Marcus more. He then surprised her. Both were so happy and in tears when Betty saw the plane tickets
and hotel reservations to visit her mom. She was so genuinely thankful of Marcus and all the learning she
gathers from the entire

Tesco Net Profit Analysis
3.2.2 Net profit margin comparison
Net profit margin is a commonly used profitability measurement tool which assesses firm's net profit by
comparing to its sales revenue. It is quite an appropriate measure of a firm's profitability position because
it considers the net income after tax rather the gross income (Bryman, 2008). Net profit margin of both J
Sainsbury Plc and its comparable firm Tesco Plc is given in the following table:
Table 1: Net profit margin of J Sainsbury Plc. & Tesco Plc. from 2013 to 2015
Net profit margin 2013 2014 2015
Sainsbury 0.0037849 0.0421312 0.03407
Tesco 0.037567 0.0413959 –0.929934 The overall Sainsbury's net profit margin changed a lot with a huge
drop in 2015 on 0.0034069. ... Show more content on Helpwriting.net ...
However back then the ratios of the two companies were comparable but their gap turned massive as
Tesco hit an extreme low in 2015 with a negative ratio of 0.092993385 where Tesco generated an
operating loss twice as large as the operating profit it made in 2014. One of the main circumstances
leading to this loss–making Tesco is the £263m accounting scandal that hit the supermarket last year
(Neville, 2015). As a result many costs have hit Tesco's profits turning it into a loss such as restructuring
costs including redundancy and compensation costs related to changes in store colleague working
arrangements in the UK, Europe and Asia, redundancy costs relating to Head Office restructures across
the Group, and the redundancy cost of store closures in the UK. £266m has been recognized in costs of
sales and £150m within administrative expenses. (Tesco, 2015)
J Sainsbury Plc is in a stable position and it is in better position in all the three years than the net profit
margin of Tesco. This is the consequence of better implementation and introduction of higher quality
products in their sales mix.
3.2.3 Return on capital employed (ROCE)

The Profit Price Based Organizations
Profit Profit price based organizations are based around two main ideas one is target return and the other
is maximizing profit (From the expert: Price objectives or orientation. (n.d.). Maximizing profit is a
challenging aspect in business because the company needs to find a price point at which customers are
happy, while also maximizing returns and profit. The company that comes to mind is Reliance Steel and
Aluminum Co. Reliance is the largest metal service center in the world and now is over a 10 billion dollar
fortune 500 company. Reliance sells steel B2B on a daily basis with the intention of maximizing profits.
The pricing strategy of discounting and allowances for steel really depends on the market and the value of
steel in the US and around the world. Reliance has to have a very fluid pricing strategy in place to make
adjustments depending on the currently volatile steel market. There are certain customers that have
loyalty to the Reliance name and then there are others that shop solely based on price and the lowest cost
available. Reliance prices their steel based on each individual account and the reason for that is to
maximize profit and return.
Sales
Organizations which utilize a sales orientation to set pricing are trying to increase revenue through an
increase in the number sales of their offerings (Grewal, 2014, p. 429). An example of an existing
organization which uses a sales oriented pricing strategy is Tiffany and Co. Tiffany and Co. is a

Profit Maximisation
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 that firms take day–to–
day regarding pricing, output levels, the market and capital investment. Depending on the size of the
corporation, objectives will evolve to meet changing economic conditions. The standard neo–classical
assumption is ... Show more content on Helpwriting.net ...
It is assumed that each wants to maximize his or her profit but that each is subject to constraints. In this
case, shareholders are the principals who employ the managers to maximize profits on their behalf. The
concept of principal–agent can explore in greater detail the barriers imposed for each party involved.
Recited from Worthington, Britton and Rees (Pg 41, 2001), "firstly there is an imbalance in power
between the principal and the agent; secondly there is likely to be a divergence of interests between the
principal and the agent and the possibility of opportunism exists." One problem in assuming that
businesses set price and output to maximize profits is the decision–taking; where the divorce between
ownership and control, can be difficult to monitor. The shareholders may not always be aware that
managers making the key day–to–day decisions are operating to maximize shareholder value. Hornby et
al. indicates that different problems also associated with the P – A theory include ‘moral hazards ' and
‘adverse selections '. Both factors coincide with information deficiencies for both the shareholders and
the managers. Another proposition by Hornby et al. signifies

For-Profit College Essay
The for–profit college and university (FPCU) is an institutional type that "'do[es]' education or schooling
but also 'behave[s]' like a business, while preparing students for occupational roles (Hentschke, Lechuga
& Tierney, 2010, p. 2). This paper will discuss history; cite changes in curriculum, degree offerings, and
institution classification; and explore current issues of financial viability, accreditation, and fraudulent
practices of the for–profit college.
History
For–profit colleges and universities began as private schools as early as "the Golden Age of Greece, when
anyone could open up a private school and teach" (Coleman & Vedder, 2008, p. 5). However, it was
during the Colonial Era that the first American for–profit schools existed. ... Show more content on
Helpwriting.net ...
According to the American Association of University Professors (AAUP), one of the components of
academic freedom is "the freedom to discuss subject matter in the classroom" (Ruch, 2001, p. 128).
Nelson (2010) interprets this as a "faculty member's right to remain true to his or her pedagogical
philosophy and intellectual commitments and allows faculty members institutional latitude in deciding
how to teach the courses for which they are responsible." While the clergy and entrepreneur faculty of the
early for–profit schools possessed academic freedom through self–management, academic freedom is
somewhat constrained for faculty employed by the University of

Costs and Profit Assignment
Assignment 2
(20 points)
Assignment 2: Costs and Profit
Instructions
Save this file in your course folder, and name it with Assignment, the section number, and your first initial
and last name. For example, Jessie Robinson's assignment for Section 1 would be named
Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the question says
otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to
save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
Assignment Questions
In Section 2, you learned about costs and profit. Now, you'll apply what you learned.
1. Choose a real or made up ... Show more content on Helpwriting.net ...
Typically, net profit is measured on a quarterly or annual basis. When compared with a company net
profit during other periods, it can provide a useful measure for how profitable a company is over time and
the overall performance of the company & management team.
4. If you were running a company, describe at least two things you would do to improve its productivity.
(1–4 sentences. 2.0 points)
This is a massive one in today's era of modern technology: emails, instant messaging, status updates, sms
etc. When you are in the middle of an important task and you get interrupted or distracted, it can take you
up to 20 minutes to get back into the zone. If this happens 3 times in a day, that's 1 hour of lost
productivity. In a fortnight, that's 10 hours or more than one whole day of lost productivity, just from
being interrupted. Imagine what you could do if you had a whole extra day every fortnight. Now you
know how.
The television networks know about prime time – that is the time when most people are watching and
they will get their best return for their money. Hence, they put on their best shows during this time. What
is your prime time? Your prime time is the time when you are at your most productive. Use this time to
take on your most challenging and valuable tasks. For me, my prime times are either in the mornings or

evenings. I try to keep my afternoons for lower value tasks while my mornings and evenings are set aside
for tasks that require

Not-For-Profit Organisation
Having never directly worked for a not–for–profit organisation before, I was not sure what exactly to
expect. However, I had some preconceptions. Logically speaking, I assumed a not–for–profit organisation
would have far less resources, for lack of a better word, be disorganised; given the reliance on a pool of
volunteers rather than salaried employees. Furthermore, I expected to receive minimal supervision and/or
training as I appreciated that my supervisor's time was extremely valuable. After having spent 3–days at
Amnesty International Australia ('AIA'), I would argue that my assumptions have thus far proven correct.
Having worked in large corporate organisations such as Deloitte and the QBE Insurance Group, the
contrast in resources could not be starker. Furthermore, my supervisor often lacked time to run me
through all the tasks she wanted me to do. For example, on the first day she had to cut the orientation
short because of an urgent call. On the second day, she was busy introducing a University of Sydney
student. An on the third day, she was not present for most of the morning because of a meeting. Despite
all this, I am enjoying my experience. ... Show more content on Helpwriting.net ...
For example, one of my tasks was to go through the AIA Constitution to develop an understanding of the
organisation and the legal context in which it operates under. I expected the reading material to be dense
and difficult to interpret. However, the content I learnt in Business Associations (LAWS1091) proved
extremely topical. I was quickly able to recall key terms such as annual general meetings, quorums, super
majorities and references to the Corporations Act. Whilst it probably was not the most interesting task I
could have been assigned, I understood the rationale behind it. It is better to begin with a strong
foundation and build on top of it rather than trying to jump straight and get

Questions On Financial Management For Profit

Recommended

Recommended

More Related Content

More from Lisa Fields

More from Lisa Fields (20)

Recently uploaded

Recently uploaded (20)

Questions On Financial Management For Profit