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BUS 210 Week 1 Discussion Question.2

BUS 210 Week 1 Discussion Question.2 - done properly...

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BUS 210 Week 1 Discussion Question 2 What are the similarities and differences between profit and profitability? What makes some companies more profitable than others? Explain your conclusions. There are many differences that make companies more profitable than another. Careful market research and the study of demographic areas regarding consumer needs and industry trends help determine if products will be successful. Being able to determine what services or products consumers need or lack are also important for the industry. Being able to understand the consumer’s wants and needs, as well as knowing how to target each category is very important. It takes much studying, research, and marketing to know how to reach the consumers, but when
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Unformatted text preview: done properly, companies can succeed. To be profitable, in addition to the above factors, a company must be able to repeat profit earning activities. Simply put, profits are the excess of revenue over expenses, and are an amount whose measure is taken at a particular point in time. Just because a company earns a profit does not mean it is profitable. Companies have both short term and long term expenses and earning cycles. Profit can be earned in the short term, but lost in the long term if a company does not to protect its ability to meet the long term obligations with the short run profits it makes ....
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