2015 1. What is Profit Maximization using TR-TC Approach? Profit Maximization using TR-TC Approach is a method in determining the Profit and the Loss of a certain Company. To obtain the profit maximizing output quantity‚ we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity‚ we can either compute equations or plot the data directly on a graph. (Lipsey‚ 2011) Figure 1.Illustration of Profit Maximization using
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financial management relationship between non-profit and for-profit organizations. A recent surge to push non-profit organizations to behave in a more business-like manner has resulted in an evaluation of the financial management practices. This paper examines a few of the similarities and differences amongst the two organizational types in relation to source of funding‚ performance evaluation measures‚ and governing mechanisms. The analysis of non-profit organizations leads to an understanding that
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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
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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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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
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For Profit Vs. Not For Profit organizations: I would like to start with the more interesting type of organizations to discuss and that is not for profit organization (NPO). The first advantage to NPO is simply tax exemption (IRS‚ 2012)‚ once an organization meets certain criteria and is approved as a NPO‚ it doesn’t pay tax on its income. It is very important to understand here that the money saved from not paying tax is reinvested in such organization to either continue providing the type of services
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A charity for profit entity exists‚ and its role is to serve a charitable mission‚ but they are legally for profit. Profit charities basically focus on revenue and runs like a company. Their aim is generating profit for their company. Because it is a charity for profit‚ they have to pay taxes for the profit they made‚ while a nonprofit charity will not be taxed. Charites for profit can be categorized into two different sections. Firstly‚ the benefit corporation charities. They can maximize their
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Abstract Have you ever wondered how not-for-profit organizations are not-for-profit? Or how not-for-profit organizations can operate at an accounting profit but still be considered a not-for-profit organization? Over the year’‚ not-for-profit organizations have had many changes in rules and regulations set forth for not-for-profit organizations to abide by. There are three major financial statements involved with not-for-profit organizations and one voluntary financial statement‚ plus four key governmental
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The monthly giving programs have become very popular among non-profits because of their potential for long term financial commitments. This recurring giving is a monthly donation that happens automatically using a process that’s referred to as E.M.T (Electronic Money Transfer.) This valuable program provides a predictable source of income that a non-profit can depend on every month without question. Recruiting monthly donors is inexpensive and affordable. Once set up‚ the donation process is electronic
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1.) “The only rule of business is the increase of profits.” Discuss. We are now discuss about the rule of business‚ is it just maximize profit without any moral responsibility? Or we need to make decisions that protect and benefit society? According to the Dictionary of Finance and Investment Terms‚ social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximize profits”. We don’t have “absolutely” in the world‚ but we still
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