Content:
The performance of organisations are measured in many different ways, and the most appropriate measure(s) will depend on the nature of the organisation, and one of the most common measures of performance is net profit...
Analysis:
Net profit measures the profit left after all the operating costs of the business have been deducted. These costs may include the costs of producting and marketing the products as well as fixed costs. It is the lifeblood of the organisation, because unless the business makes a profit, it cannot finance growth.
Application:
In a growing economy with new oppertunities arising all the time a business that cannot grow is condemed to a slow death. For example Woolworths, during 2007, every £1 that went through its tills less than 1p was the companys net profit. A business can't survive on that.
Comments
Report
Report