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2 years ago

What is the role of profit in a business ?

Business

2 answers:

Dafna1 [17]2 years ago

8 0

Answer:

Profit equals a company's revenues minus expenses. Earning a profit is important to a business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.

harkovskaia [24]2 years ago

3 0

Answer:

Profit plays a huge role in business. business is run to gain profit .the main purpose of the business is to make profit if there is no profit in any business then it can no longer be run as it won't be possible to meet up the demands without profits.

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Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted wi

Burka [1]

Answer:

b. No journal entry is required

Explanation:

Given that

Estimated percentage of losing = 40%

Estimated amount = $800,000

By considering the above information, we concluded that

As in the case of the litigation, there is no journal entry is recorded as the possibility of the event is not certain with respect to the entity's economic resources.

Therefore in the given case, the correct option is b.

5 0

3 years ago

The corporate IT manager wants you to implement a process that separates corporate apps from personal apps on mobile devices. Wh

GarryVolchara [31]

Answer:

1. Sandboxing

2. Containerization

Explanation:

The function of Sandboxing is to distinguish applications from one another and does not permit them to share the data, user etc

While on the other hand Containerization is a technique that used to separate different data sensitives like a business and personal data kept on the mobile device

Therefore according to the given situation, the option 1 and option 2 is correct

5 0

3 years ago

A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li

Stolb23 [73]

Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.

Explanation:

A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.

Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.

A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.

6 0

3 years ago

G dixon company produced 6,000 units of product that required 1.5 standard hours per unit. the standard fixed overhead cost per

sweet [91]

Given:
Actual Production 6,000 units @ 1.5 standard hours per unit.
Budgeted hours: 10,000
Fixed overhead cost per unit is $0.50 per hour.

6000 units * 1.5 std. hrs/unit = 9,000 hours

Actual hours: 9,000 hours * $0.50 per hour = $4,500
Budgeted hours: 10,000 hours * $0.50 per hour = $5,000

Fixed Factory Overhead Volume Variance = $5,000 - $4,500 = $500 UNFAVORABLE.

It is unfavorable because the production is inefficient. It is more favorable if the produced units are higher than 6,000 units and the actual hours of production are more than the budgeted hours of production.

3 0

3 years ago

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets

a_sh-v [17]

Answer:

Activity Variance for net operating Income = $ 10598 Unfavorable

Explanation:

Activity Variance for net operating Income = $ 10598 Unfavorable

Actual Budgeted

6600 Units 6600 Units

Revenue $194,472 $ 185,460

Direct labor $16,145 $ 16500

Direct materials $67,059 $ 68640

Manufacturing overhead $45,587 $ 45620

Selling and

<u>Administrative expenses $25,363 $ 24980</u>

Total Expenses $ 154154 155740

Net Op. Income $ 40,318 $ 29,720

The activity variance for net operating income = Actual- budget=

= $ 40,318 - $ 29,720

= $ 10598 Unfavorable

3 0

3 years ago

What is the role of profit in a business ?​

What is the role of profit in a business ?