Question

hi

I want five titles about profit and under each title a set of points. I have a presentation that talks about profit and I have to talk for five minutes.

Gmail.. 51% 13:14 khuloud Read Only - You can't save changes to this file. Save a copy Two Ways to Increase Profit: The first, and best, is to increase revenue. That can be done by raising prices, increasing the number of customers, or expanding the number of products sold to each customer The second way to increase profit is to cut costs. That is a good method up to a point. It makes a company more efficient, and therefore more competitive. Once costs are down, the business can reduce prices. It can also use this efficiency to improve service, and react more quickly How Profit /Drives the Stock Market: Earnings season significantly affects how the stock market does If earnings are higher than forecast, the company's stock price rises. earnings are lower than expected, prices will drop. Earnings seasons are especially important to watch in the transition phases of the business cycle If earnings improve better than expected after a trough, then the economy is coming out of the recession

Answer 1

PROFIT MAXIMIZATION

EVERY ORGANIZATIONS PRIMARY AIM IS TO MAXIMIZE THEIR PROFIT. PROFIT MAKING IS THE MOST IMPORTANT AIM OF EVERY BUSINESS. FOR INCREASING THE AMOUNT OF PROFIT,THERE SHOULD BE CUSTOMER SATISFACTION. CUSTOMERS ARE THE BACKBONE OF EVERY BUSINESS. FOR THE SATISFACTION OF CUSTOMERS, PROVIDE QUALITY PRODUCTS IN REASONABLE PRIZE ON THE RIGHT TIME AND AT THE RIGHT PLACE. FOR ACHIEVING PROFIT MAXIMIZATION THE MANAGEMENT SHOULD TRY TO CO ORDINATE THE ACTIVITIES OF THE BUSINESS. PLANNING ALSO PLAY A VITAL ROLE IN PROFIT MAXIMIZATION. ALSO CARRY ON ACTIVITIES TO REDUCE THE COST OF PRODUCTION AND OPERATION AT LOWEST LEVEL. MARKET CONDITION IS ALSO AN IMPORTANT FACTOR AFFECTING PROFIT MAXIMIZATION. SO ALWAYS KEEP IN MIND TO SUPPLY QUALITY PRODUCTS AT REASONABLE PRIZE.

ACCUMULATED PROFIT

UN DISTRIBUTED PROFIT OF THE COMPANY IS CALLED ACCUMULATED PROFIT. THIS AMOUNT IS NOT DISTRIBUTED TO SHAREHOLDERS AS DIVIDEND . THESE AMOUNT CAN BE USED TO PAY OFF DEBTS OR CAN BE CARRIED OVER TO NEXT YEAR AS RETAINED EARNINGS. IN SIMPLE LANGUAGE ACCUMULATED PROFIT MEANS PROFIT CARRIED OVER TO NEXT YEAR.

PROFIT DISTRIBUTION

AS WE KNOW THAT ,TO ACHIEVE FINAL PROFIT, EVERY STAGE OF OPERATION/ PRODUCTION SHOULD BE PROFITABLE. SO THAT THE EARNED PROFIT SHOULD BE EQUALLY DISTRIBUTED AMONG EACH INDIVIDUAL INVOLVED IN THE GENERATION OF REVENUE OR PROFIT OF THE COMPANY .A PART OF THE PROFIT SHOULD BE DISTRIBUTED AMONG STAKE HOLDERS AND CERTAIN AMOUNT SHOULD BE TRANSFERRED TO CONTINGENCY FUND.

PRODUCT PRICING SYSTEM SHOULD BE SET UP IN SUCH A WAY THAT THE PROFIT OF THE COMPANY SHOULD REACH TO PRODUCERS,EXPORTERS ETC....

TAX POLICIES

IT IS MANDATORY THAT EACH AND EVERY ORGANIZATION SHOULD PAY TAX FROM THEIR PROFIT. IF THE PROFIT AMOUNT IS HIGH, THEN THE TAX AMOUNT SHOULD ALSO BE HIGH. FOR REDUCING TAX BURDEN COMPANIES MAY TRY TO MANIPULATE THEIR ACCOUNTING RECORDS WHICH IS ILLEGAL. HOWEVER RETAINED EARNINGS CALCULATION AND DEPRECIATION POLICIES HELP THE COMPANY TO REDUCE TAX BURDEN.

CUSTOMER AND PROFIT

AS ALREADY DISCUSSED, CONSUMERS ARE THE BACK BONE OF EVERY BUSINESS, CUSTOMERS ROLE IN PROFIT GENERATION CAN NOT BE AVOIDED. SO CUSTOMERS APPROACHES,THEIR DESIRES AND PASSION ETC SHOULD AFFECT THE PROFIT OF THE COMPANY. THE ONLY THING THAT WE CAN DO IS TO PROVIDE THEM PRODUCT TO SATISFY THEIR NEEDS.

ECONOMY AND PROFIT

PROFIT GENERATION TO A GREAT EXTENT DEPENDS ON ECONOMIC CONDITIONS, GOVERNMENT POLICIES ETC.. IF THE GOVERNMENT PROVIDE SUBSIDIES AND SUPPORT PRIVATE SECTOR , PROFIT MAKING WILL BECOME A SIMPLE TASK.

TO SPEAK ABOUT PROFIT, WE CAN TALK ABOUT BUSINESS FINANCE TOO.ALL THE ACTIVITIES OF THE BUSINESS SHOULD BE TOUCHED IN THE TALK.

I THINK THESE INFORMATION S WILL HELP YOU . ALL THE BEST .

THANK YOU