COST ACCOUNTING
FINANCIAL TERMINOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Make money for investors by providing goods or services
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Make money for retailers by providing goods for services
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Make money for customers by providing goods or services
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Make money for employees by providing goods or services
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Detailed explanation-1: -Profit, for any company, is the primary goal, and with a company that does not initially have investors or financing, profit may be the corporation’s only capital. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.
Detailed explanation-2: -Profit Earning Every business is centered around the motive of earning profit. This economic objective of business helps them to generate revenue and survive in the competitive market.
Detailed explanation-3: -The main objective of every business is to earn profits. Reason: Primary objective of a business is to earn profits.
Detailed explanation-4: -The main objective is always to earn a profit.
Detailed explanation-5: -The main objectives that a business might have are: Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.