One issue surrounding business is the relationship of the business to the consumers. Kant’s theory is deontological and objective because it looks at the morality within the action itself and not the result from it. Kant’s theory expresses the importance of treating people as ends in themselves, rather than only as a means to an end. This approach is helpful as it means that businesses need to use their consumers as not only a means for a profit, but also use them as an end e.g. the products that are supplied are of a certain quality.
Competitors likely would not want to risk losing current sales by adding features which would raise their prices. Threat from Buyers – Because Company G is able to sell the Little Wonder at the current market price , if not lower, the threat from buyers is
This allows the employer to modify and potentially grow a better business, and with want, a larger one, on a regulated path. After review, it is recognized that not too much negative attention is brought to OSHA, pertaining to small businesses. These businesses are given the opportunity to reconstruct and develop; otherwise could be stated for corporations. OSHA feels that by bringing damaging inspections to the public eye that it will incentivize other companies to succumb to submission. It has been reported that OSHA does not take the proper steps to rectify and/or modify the violations that are released; ultimately, this ‘affects OSHA’s credibility, with employers.’
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
CVP analysis allows management to use variable cost to identify future performances within the company. This can also show disadvantages of managers not looking thoroughly through the companies performances. These managers tend to be ones who do not record their records thoroughly. CVP analysis tends to be a beneficial tool to management, but it is limited in the amount of information that can be provided for product operations. This analysis gives a hypothesis of what the question is made of, to give an advantage to management but continues to not be an exact procedure for management.
Scholars such as Friedman suggest that treating the economic responsibility as the most important responsibility of a business, is called a profit-maximising view, and “the social responsibility of a business is to increase its profits.” This kind of view states that a company should be operated on a profit-orientated basis, with its sole mission being to increase profits. This approach would seem to benefit stockholders, as well as stakeholders, as the stockholder is going to benefit from the profit made by the company and will gain something back from the company, however problems can occur when the businesses and companies do not balance their ethical responsibility, as they can therefore be perceived as greed and unable to balance their corporate social responsibility, and will cause a bad name for a business. So although the stockholder may also be gaining profit by doing this (what the company sees as doing the right thing) is not necessarily the right thing to do in terms of stakeholders. However, Friedman would argue that as long as the business is maximising its profit, that is the main point and so the loss of the stakeholders is less important. This argument can be deemed as weak as Friedman’s approach does not mean that stakeholders can be benefited alongside stockholders, and so disagrees with
A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. It also indicates how well a company's management is deploying the shareholders' capital. In other words, the higher the ROE the better. Falling ROE is usually a problem. CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies.
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.
Companies will know where they can maximize these profits. Also consumers spending can be predicted off what provides the greatest utility or satisfaction. Because of the laws of supply and demand, it is better understood when to produce or offer goods and services and when it is better to produce
Those profit making courses are assuming you already took the decision. In fact, having a business is not at all about profit. If you are serious about it, and if it proves to be a good and mature choice, you will have to face the profit challenges sooner or later. It’s in a business nature to have profit in order to survive. But making profit the most important part in having a business is just wrong.