Week 1 DQ1and2 - adding a new item, sometimes it does not...

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Week 1 DQ1 The profitability of a business has to do with gaining or having an advantage over another business that may or may not lead to more monetary gain. Some companies are more profitable than others as they have invested their capital by making the most productive use of their resources. By lowering operating costs and creating products that influence customers to buy even at a high price, is one way a company can be more profitable than another company. The similarities in profit and profitable is that it involves capital. The differences is that profit is the actual total of monetary difference between sales revenues and operating costs and profitability measures how well a company is making use of its capital by investing in resources that create goods and services that generate profits. When a fast food restaurant such as McDonalds steps up the competition to remain profitable by
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Unformatted text preview: adding a new item, sometimes it does not make too much of a difference. With its rivals being Wendys and Burger King, McDonalds does the occasional price specials and promotions, but really went out on a limb for the customer and environment by purchasing brown bags that were eco friendly. These franchises make a profit and are profitable as they are innovative with their business model. Week 1 DQ 2 The prices of bananas are higher during the colder season because fewer areas are able to supply bananas thus causing the prices to rise. Another factor that could affect prices would be natural disaster to crops or insects. When the bananas in season are available from multiple locations companies are able to purchase at a lower cost making them less expensive....
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This note was uploaded on 02/28/2010 for the course BUS210 bus210 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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Week 1 DQ1and2 - adding a new item, sometimes it does not...

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