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Main difference between gross profit and operating profit is that former profit indicate profit that remain after deducting cost of goods sold from the revenue earned in the business (Weygandt, Kimmel and Kieso, 2015). On other hand, operating profit reflect profit that is computed after subtracting direct and indirect expenses from the revenue. Interest, tax and dividend are not taken into account for deduction purpose.
(c)
Three stakeholders are shareholders, creditors and Government.
(d)
Three stakeholders are given below.
• Shareholders: They need profit figures to make investment related decisions.
• Creditors: They need profit figures to determine whether firm will be able to pay its debt on time (Kieso and et.al., 2019).
• Government: Government need profit figures because accordingly tax is charged on people.
Question 2
(a)
Meaning of 4P’s is given below.
• Product: Firm is preparing mobile phones and different mobile phones that firm manufacture are its products.
• Price: Firm is selling mobile phones at low price, medium price and high price. Thus, firm is following competitive and low price as well as premium price strategy in the business (Lovelock and Patterson, 2015).
• Promotion: Through social media marketing of product will be done.
• Place: Mobile phones will be delivered through stores and online mode.
(b)
4C’s are critical thinking, creativity, collaboration and communication.
• Critical thinking: It means deep thinking and evaluation of any subject or topic.
• Creativity: It means thinking outside of box to handle any situation.
• Collaboration: It is the practice to work with others to achieve a common goal (Cateora and et.al., 2020). More critical thinking and creativity will be there more there will be collaboration.
• Communication: It is practice of conveying ideas clearly. More clear will be communication better will be collaboration.


Question 4
(a)
There is difference between absolute and comparative advantage. In case of absolute advantage it is identified that which nation is best at producing specific sort of goods. On other hand, in case of comparative advantage nation produce alternative goods and it loose least in producing it (Tietenberg and Lewis, 2018). If France can prepare 14 planes in a day and USA can produce 45 planes in a day then in that case it can be said that USA is at absolute advantage. On other hand, comparative advantage refers to bearing opportunity cost in the business. China can produce both computer and cell phone. Opportunity cost for one computer is 1.5 cell phone and same for cell phone is 0.67 computers. Thailand can produce only single one and opportunity cost is low in case of computer then in that case if it produce computer then it is at comparative advantage of China.
(b)
Government should always not pursue free trade policy because sometimes due to following this policy local industry got damaged heavily and it struggle for its survival. Foreign companies build their empire in the nation and country become excessively dependent on foreign companies like seen in Nigeria (Sahlins, 2017). Hence, Government should not always pursue policy of free trade. There are number of benefits of free trade but in case of some industries free trade must not be allowed. By doing so Government can ensure that domestic companies will be able to grow and country will not be dependent on other nations companies to meet its needs.

REFERENCE
Books and Journals
Cateora, P. R. and et.al., 2020. International marketing. McGraw-Hill Education.
Hollensen, S. 2019. Marketing management: A relationship approach. Pearson Education.
Kieso, D. E. and et.al., 2019. Intermediate Accounting, Volume 2. John Wiley & Sons.
Lovelock, C. and Patterson, P. 2015. Services marketing. Pearson Australia.
Malhotra, N. K. and Dash, S. 2016. Marketing research: An applied orientation. Pearson,.
Sahlins, M. 2017. Stone age economics. Taylor & Francis.
Tietenberg, T. H. and Lewis, L. 2018. Environmental and natural resource economics. Routledge.
Weygandt, J. J., Kimmel, P. D. and Kieso, D. E. 2015. Accounting principles. John Wiley & Sons.

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