BUS 210 WEEK1 DQ2 - is calculated by how well the company...

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What makes some companies more profitable than others? What are the similarities and differences between profit and profitability? Provide real-world examples to support your answer. There are a number of reasons why a company is more profitable than another company. Some companies have a better-organized business plan. The product a company is selling is a huge factor for profit making. If the product the company is selling is undesirable or not needed by the population, the company looses money and potential profit. The difference between profit and profitability is, the profit equals (=) sales income minus (-) the operations costs. The profit is a real number. Profitability on the other hand
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Unformatted text preview: is calculated by how well the company is utilizing its assets into resources that create the products that the company sells. Investors and managers alike are able to see, through profitability, how the company is performing against other companies in the industry. CVS, for example, is selling over the counter cold medicine from various companies, but the cheapest of them all is the CVS brand name, although it has exactly the same ingredients than the name brand. Through a proper business plan the company decided that it would be a good move and profitable to “make” their brand of medicine....
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