Foreign Educator Teaching System

Tag: profit

  • Pricing under monopoly

    Pricing and output policies in monopoly One seller supplying the product Monopoly can charge the price which is acceptable to the consumers It may restrict the supply to increase the demand and earn abnormal profits Monopoly does not respond to the consumers’ demands because it knows it will sell the product anyway

  • Types of promotion

    Aims of promotion To increase the sales Provide information about the product Inform people about the existence of product   Different forms of promotions Coupons Deals Samples Rebates Point of purchase displays Sweepstakes

  • Product life cycle

    Stages of product life cycle Development Introduction Growth Maturity Saturation Decline

  • Means of communication

    Different means of communication Internal communication External communication   Concept of communication The exchange of information between people is called communication The exchange of information can be on individual or organizational level   Importance of communication To motivate employees To get the decisions implemented To get feedback

  • Role of Entrepreneur

    Role and function of Entrepreneurship The role of function of entrepreneur is to combine all resources in an effort to make profit A person incurring loss in business is also called a entrepreneur   Risk The entrepreneur takes the risk of his money and time to provide goods and services with the aim of earning…

  • What is limited company?

    Limited company A business owned and managed by a group of people Directors make the decisions Profit is shared among the shareholders If businesses lose money the shareholders don’t have to sell their personal assets to repay creditors

  • What is Sole trader?

    Sole trader A business owned and managed by one person One person makes the decisions Profit is not shared, sole trader enjoys the entire profit If business loses money, the sole trader has to sell his/her personal assets to pay off creditors (unlimited liability)

  • Stakeholders in Business

    Stakeholders in business Consumers Employees Managers Owners Financiers Shareholders   Consumers Role They buy the goods and services provided by business Provide revenue to the business Objectives Get good quality products at good prices Appropriate customer care   Employees Role Produce or provide goods and services for remuneration Objectives Get salary on time Job security…

  • Different Objectives

    Understanding different objectives Growth Profitability Market share   Growth Growth is often associated with the sales or the number of employees New businesses do not aim for growth initially   Profitability Profit is the difference between total costs and total revenues Almost all businesses aim for maximum profit Businesses need profit to pay the costs…

  • Secondary Sector

    Secondary sector Secondary sector converts the primary goods into manufactured goods The secondary sector of the economy manufactures finished goods. Examples: Construction Textile production Processing