Why Business Matters From A Christian Perspective

1131 WordsFeb 22, 20175 Pages
Why are businesses in the business? Is it for the sake of giving back to the community, giving people employment, or is it to make a profit? Jeff Van Duzer (Van Duzer), author of “Why Business Matters to God,” describes business from a Christian perspective. According to Van Duzer, “Business is called first not to profit but to participate in the work of redemption, providing meaningful work and helping communities flourish (Van Duzer, 2010).” This document will examine profit from an accounting perspective comparable to the perspective of “Why Business Matters to God.” What is Profit? There are various terms for profit such as bottom line, net profit or net earnings. A profit is also described in numerous ways. One description of…show more content…
How the business gets there and what they do matters to God. Most companies consistently strive to continuously earn profit and accounting is an integral part of the analysis. There are three major ways companies examine profitability analyzing gross profit, operating profit and net profit (Investipedia.com 2016). All three can be found on the income statement and all three give details of the company’s performance especially when benchmarking against other time periods, competitors, and industries. Many companies analyze gross profit margin to assess the health of the business and ascertain the company’s performance creating a product or service compared to the competition (Investipedia.com 2016). This first level of profitability calculates by taking sales minus the cost of goods sold (COGS and gross profit margin are generated by dividing gross profit by sales. The changes in the company’s pricing strategy or industry regulations can impact gross margin. A company needs adequate gross margin to pay for its operating expenses (Investipedia.com 2016). While gross profit looks at profitability after direct expenses are considered, operating profit examines profitability after operating expenses such as salaries and administrative costs
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