Define solvency and profitability. How are they alike?

Q: Which one of the following statement is true about profit maximization? a It foc US or Ountina

A: 1. Profit maximization is the concept that focuses on maximising the profits. This concept ignores…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: How would you define profit planning? What is the importance of profit planning?

A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…

Q: analysis? What are identified as possible risks associated with cost

A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…

Q: what are the meaning of Revenue Enhancement and Cost Saving ? and I need examples for each.

A: Revenue enhancement is the enhancement or increase in the revenue, which also leads to an increase…

Q: a) Discuss the measures stakeholders undertake to minimize the costs of equity

A: The cost of equity is the rate of return that a corporate entity requires to determine whether or…

Q: What is Profitability?

A: Profits means the excess of revenue earned during a period over the expenditure incurred to generate…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.

A: Financial ratios are the metrics used to evaluate the liquidity, profitability, solvency and overall…

Q: Profitability

A: Profitability is the prime purpose of every business. Every corporation tries to maximize its…

Q: What is the meaning of economic value added (EVA)? What does it measure? Why is it important?

A: Economic value added ("EVA") measures a company's financial performance based on the excess wealth…

Q: Explain the difference between liquidity, solvency and profitability analysis.

A: Liquidity analysis is the analysis by using ratios to determine the ability of company in repaying…

Q: How do you calculate enterprise value?

A: Enterprise value is the measure of the total value of the company. It gives aggregate value of the…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: Discuss cost-benefit analysis and financial analysis tools

A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: What is the meaning of contribution margin ratio? How is this ratio useful in planning…

A:

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: what is meant by Profit and Cashflow and how they are different?

A: Each and every business organization deals in either goods or offering services to their customers…

Q: What is market efficiency? Differentiate between weak and semi strong form efficiency

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: What is target profit?

A: Target costing:   Target costing is a business procedure that targets the cost at the earliest…

Q: theories of profit

A: The profit is the key incentive for a firm to operative business . According to each theory of the…

Q: What is the reason that makes net profit margin increases and decreases?

A: What is the reason that makes net profit margin increases and decreases?

Q: With example, explain the difference between induced and indirect economic impact.

A: Answer:- Economic impact definition:- An economic impact study investigates the effects of a certain…

Q: Explain how increased revenue that requires more value.

A: As a part of business every business required the company Revenue to be increased comparitively to…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: What are the three principal components of profitability?

A: Profitability: Profitability means the degree to which revenue from business operation exceeds…

Q: Perform a profitability analysis

A: Profit is very important element of the business. Every business wants to have maximum profit in its…

Q: 2. What is cost-volume-profit analysis and what are the important assumptions of this analysis?

A: Profit analysis entails dissecting a company's reported profit figure to determine the true extent…

Q: Explain advantages of Centralization and advantages of De-Centralization in terms of economic…

A: Centralization is the process of making all the relevant decisions from the central authority. The…

Q: How useful is cost–benefit analysis?

A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…

Q: Define the terms market value added (MVA) and economic value added (EVA).

A: The concept of economic value added was developed by Stern Stewart & co & is also known as…

Q: What is Profit and Loss (PNL)?

A: A business organisation is established with an objective to make money and increase the worth of the…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: profits and losses equally

A: Correct Answer :- B Peter  P170,000. And  john P90000

Q: Does the Profitability Analysis play an important role in decision making? How?

A: Yes, Profitability analysis helps the decision-maker in making decisions as it helps in the…

Q: What is Economic Value Added ?

A: Economic value added is used for measuring the financial performance of a company based on the…

Q: Explain the term Divisible Profit.

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Describe value, growth and momentum investing. Highlight the differences between them.

A: Value, growth, and momentum investing are the three investment strategies that aim to pave the way…

Q: What is a profit-sharing plan

A: A profit-sharing plan is also known as DPSP (Deferred profit-sharing plan).

Q: What is the profit function?

A: Profit refers to excess of revenue over cost. Profit function shows mathematical relationship…

Q: Profit maximization

A: Introduction: The term financial management refers to the art of planning, organizing, directing…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.