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A firms only responsibility to society is to earn a fair profit. Do you agree or disagree with this statement? Who is credited with saying this? Give examples of socially responsible product decisions.
Answer : Yes , I m agree When starting a small business, you need to know the potential profits you can earn from that business. You can find out the profit expectations for your industry, but you need to consider the difference between a start-up and a mature business first. The start-up period can be the most expensive and you should not expect the same profit margins more established businesses experience. Gross profit is all the money you have after subtracting the cost of goods sold. If you selll a product for more than you paid for it, you will have a gross profit. However, that does not mean your enterprise is profitable. Your net profit is your gross profit minus all expenses for the business. This can include wages, rent, travel, utilities and all the other costs you incur while doing business. It is your net profit you want to consider for a start up. You may spend…

your first year just trying to earn enough revenue to pay the bills. The Kaufman Foundation for Entrpreneurship released a study of start ups in 2008 that shows the profitability of new businesses. This study dealt with net profits after expenses. During the first year of operation, approximately 20 percent of new businesses showed no profit. However, nearly 20 percent showed profits of $25,000 to $100,000. The top 5 percent made above that. This does not predict your business’ profitability, but it does give you an idea of the kinds of expectations new business owners should have.



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