BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Profit
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Wealth maximization
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Both Profit and Wealth maximization
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None of these
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Detailed explanation-1: -Profit is a test of economic efficiency of a business. It is a yardstick by which the economic performance of a business can be judged.
Detailed explanation-2: -Efficiency can be expressed as a ratio by using the following formula: Output ÷ Input. Output, or work output, is the total amount of useful work completed without accounting for any waste and spoilage. You can also express efficiency as a percentage by multiplying the ratio by 100.
Detailed explanation-3: -The most well-known and frequently tracked is the gross domestic product (GDP).
Detailed explanation-4: -Economists use many different methods to measure how fast the economy is growing. The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything-goods and services-produced in our economy.
Detailed explanation-5: -Productive – producing for the lowest cost. Dynamic – Efficiency over time. X-efficiency – incentives to cut costs. Efficiency of scale – taking advantage of economies of scale.