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6 Cards in this Set
- Front
- Back
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What is profit? |
Profit: revenue-costs |
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When do you make profit and when do you make a loss? |
When he revenue is higher than the costs you make a profit, when the revenue is lower than the costs you make a loss. |
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Why is profit important? |
Profit is a motivator. It attracts investors. It's a reward. It can help to finance the business. It's measurable success. Guide for future investments. |
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What is profit maximisation? |
Profit maximisation is a process businesses undergo in order to determine best output and price levels in order to maximise profits. |
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What is retained profit? |
This is profit that is reinvested into the business |
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What is dividend? |
A payment made from the company to the shareholders out of the profit. |
