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9 Cards in this Set
- Front
- Back
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Financial objective |
Not necessarily profits, but return on assets (ROA) is the primary focus. ROA is the profit generated by the assets possessed by the firm. |
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Societal objective |
Helping to improve the world around us. Societal objectives are related to broader issues that make the world a better place to live. |
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Personal objective (3) |
(1) self-gratification (2) status (3) respect |
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Define strategic profit model |
Strategic profit model is a method for summarizing the factors that affect a firm's financial performance, as measured by return on assets. |
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Return on asset (ROA) equation |
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Return on asset (ROA) |
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ROA |
Net profit / Total assets |
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Net Profit |
=net sales -COGS -Opt exp |
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Total assets |
=inventory +accts. rec +current assets +fixed assets |
