describe what profit and loss accounts are. PROFIT AND LOSS ACCOUNT By law business are required to provide annual financial statements‚ which will appear in their company report‚ there are two main types of financial statements‚ one is balance sheet and the other is a profit and loss account. A profit and loss account is a record which can be updated regularly and generally shows businesses transactions made over a period of time (usually within 12 months)‚ An example profit and loss account
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Is it possible for large‚ profit focussed organisations to be both profitable and “fair”? Over the past year there have been an increasing number of issues which have risen on how businesses such as Amazon‚ Thames Water‚ Google‚ Facebook and Starbucks have made vast amount of profits but haven’t been fair-minded. For example Starbucks made £400m sales in the UK but paid no corporation tax. According to Milton Freidman the main objective of a business is to increase profits so long as it stays within
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PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1‚z2). Prices (r1‚r2). – Price taker on input market. • Firm has output q=f(z1‚z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1‚z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose (z1
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Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
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Profit Maximization model helps to predict the price-output behavior of a firm under changing market conditions like tax rates‚ wages and salaries‚ bonus‚ the degree of availability of resources‚ technology‚ fashions‚ tastes and preferences of consumers etc. It is a very simple and unambiguous model. It is the single most ideal model that can explain the normal behavior of a firm. It is often argued that no other alternative hypothesis can explain and predict the behavior of business firms better
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Solar Energy 01-15-2014 Rebekah Layton Solar Energy‚ a type of energy not extracted from the ground‚ but instead‚ emitted by the sun. After driving its way through several layers of atmospheres to earth from about ninety-three million miles away‚ the land‚ water‚ and plants soak up about half of it while the other half makes its way back into space. This type of energy is unlike any other. It comes with significant benefits such as not costing money to obtain‚ causing
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ASSIGNMENT 1 SOLAR POWERED CELL PHONES MELODY MCINTOSH STRAYER UNIVERSITY ASSIGNMENT 1 SOLAR POWERED CELL PHONES 1 Intro Ever been stranded somewhere and your cell phone battery dies? Help is on the way. The new solar powered cell phone will allow you to gain two hours of standby power from 10 minutes of sun. It can be charged with indoor light when no direct sun light is available. This cell phone can also be charged by charger. Features will be the same as traditional
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significant commitment to support the development of a vibrant solar industry. In 2006‚ SB1 established the California Solar Initiative. The initiative’s ambitious goal is to place solar electric systems on a million California roofs by 2016‚ with a total generating capacity of 3‚000 megawatts‚ equivalent to the peak output of three large nuclear reactors. Initiative critics claim that solar electricity is too expensive‚ and that the money spent on solar incentives would be better spent on other energy options
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The three myths in the “Appetite for Profit” book are choosing to eat healthier‚ marketing has little impact on food choices‚ and parents can say no to their kids. The first myth essentially comes down to the availability of healthier food. Not everyone has the option to afford this food because “healthy” food markets such as wholes food can be very expensive. Not only is it expensive‚but stores such as these are not always located in certain communities. The second myth describes the idea that
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The Pink Door Non Profit Organization that tries to create financial relief for women battling any type of cancer. The organization became a nationally classified non profit in October of 2007. The 990 form is a public document that discloses a company policies and financial stability. Many stake holder look to evaluate this form to develop interest in getting involved financially with a company. It is important that a non profit organization is operating in the most efficient way in order to gain
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