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9 Cards in this Set

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  • Back

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.

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.

Personal objective (3)

(1) self-gratification

(2) status

(3) respect

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.

Return on asset (ROA) equation

Return on asset (ROA)


Net profit / Total assets

Net Profit

=net sales


-Opt exp

Total assets


+accts. rec

+current assets

+fixed assets