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Q. Explain Profit Maximization Approach?
(i) Best Criterion on Decision-Making:- The goal of revenue maximization is regarded as the best criterion of decision-making as it offers a yardstick to judge the economic performance of the enterprises.
(ii) Proficient Allocation of Resources: - It leads to proficient allocation of scare resources as they tend to be diverted to those uses which in terms of profitability are the most desirable.
(iii) Optimum Utilization: - Optimum consumption of available resources is possible.
(iv) Utmost Social Welfare: - It make sure maximum social welfare in the form of timely payment to creditors, maximum dividend to shareholder, higher wages, better quality and lower prices, more employment opportunities to the society and maximization of capital to the owners.
Residual Income This is used for external reporting purposes. This term refers to the net income which is available for distribution to the firm's common stock holders. In mana
Accounting System: The accounting systems are the primary financial systems that any business should have in place to ensure accurate and usable financial information. The b
Give a full definition of arbitrage. Answer: Arbitrage can be illustrated as the act of concurrently buying and selling the same or equivalent assets or commodities for the aim
What are the benefits of "collecting early" and how do companies attempt to do this? A fund has time value.The sooner money is collected the better. Companies utilize regional
This is the part of after-tax personal income that is not spent.
Bond - One type of long-term PROMISSORY NOTE, often issued to the public as a SECURITY regulated under federal securities laws or state BLUE SKY LAWS. Bonds can eitherbe registered
Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang
What are "free cash flows?" Free cash flows signify the total cash flows from business operations that are available to be distributed to the suppliers of a firm's capital each
A vailable bid capacity We saw the criterion that qualifies the bidder. Now we will learn about the bid capacity. There are chances that a bidder might acquire more contrac
Various other types of bonds are- 1. Domestic Bonds 2. Foreign Bonds 3. Euro Bonds 4. Global Bonds 5. Floating Rate-Bonds
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