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

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: " The sale forecast is the cornerstone for profit planning," why?

A: Definition: Operating budget: The operating budget is that budget that is prepared to plan all…

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: 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: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

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: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: Explain Entrepreneurial Profits?

A: The question is based on the concept Entrepreneurial Profits, profit earned by an enterprise.

Q: Discuss the role of profit plan in implementing strategy.

A: Strategy: It is a plan of action that is framed to achieve the organizational overall goals.

Q: What is the process of evaluating any business investment decision?

A: Following are the steps of evaluating any business investment decision: Step 1: Ascertain the…

Q: While comparing investment returns is an important starting point in evaluating investment…

A: Following are the steps involved in the performance analysis of investments:Identification of the…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is risk, and how does it affect decisions about investment?

A: Risk and return are related to each other while making investment.

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

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 approach measurement?

A: The market approach is just like comparing one set of assets with another both having the same…

Q: What theories can define the relationship between financial literacy and investment decision?

A: Behavioral finance is the study of the influence of external factors and the psychology on the…

Q: How does opportunity cost enter into a make or buy decision?

A: Opportunity Cost:   Opportunity Cost is the future capacity or potential advantage that can be…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Discuss the importance of measuring and managing marketing return on investment?

A: Marketing return on investment is refer as the return on investment generate from marketing…

Q: Why this Strategic, Tactical and Operational decision classification more relevant than classic…

A: We know that a manager has to take various decision in achieving the goal set the by management.…

Q: Explain the term Value investing strategies?

A: SOLUTION:-   Benjamin Graham, an American economist, investor, and professor, pioneered a new method…

Q: Differentiate between a profit center and an investment center.

A: Responsibility center: A responsibility center is a department or unit of a corporation in which…

Q: Information has the quality of relevance if it influences economic decisions of users by helping…

A: The financial statements  are prepared on some standardized principles. These principles are…

Q: What is the relationship between profit and ethics?

A: Every business entity who is operating whether it is manufacturing business or service company want…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: Define solvency and profitability. How are they alike?

A: Answer: Solvency is status of company when the asset is higher than liabilities. Profitability  is…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: Which of the following is most accurate about fundamental and technical analysis? Fundamental…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: financial factors that the firm should consider in the decision making process?

A: Quality is a very important aspect in the process of manufacture as brand and goodwill is created by…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

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: what is earning forecasting?

A: The act or process of using certain data to predict future earnings of a publicly-traded company.…