ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business objectives
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Economies of scale
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Variable costs
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Fixed costs
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Detailed explanation-1: -Sales maximization is a business strategy that a company implements when it wants to focus on generating as much revenue as possible. Profit maximization is the objective of generating as much profit as possible over time. Sales are the initial steps toward profitability. There are no profits without sales.
Detailed explanation-2: -Profit maximisation is a variation of the profit objective. This is when an organisation aims to make as much profit as possible. They do this by finding the right balance between their selling price, sales volume, and the costs of production.
Detailed explanation-3: -A growing market share corresponds to growing revenue. That, in turn, means a business can scale up its operations and opportunity for greater profitability. To gain market share should be a serious business goal. There are a number of strategies a company can put to work to increase market share.
Detailed explanation-4: -3.1 1] Profit Earning. 3.2 2] Market Share / Creation of Customers. 3.3 3] Innovation & Utilization of Resources. 3.4 4] Increasing Productivity.