PROFITABILITY


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PROFITABILITY
PROFITABILITYIn the free enterprise system, companies are in business to make a profit. Management has the responsibility of investing in ventures that are financially attractive by increasing earnings, providing attractive rates of return, and increasing the value added of the company. Every viable business has limitations on the capital available for investment; therefore, it will invest in the most economically attractive ventures. The objectives and goals of a company are developed by management. Corporate objectives may include one or several of the following: maximize return on investment, maximize return on stockholders' equity, maximize aggregate earnings, maximize common stock prices, increase market share, increase economic value, increase earnings per share of stock, and increase market valu…
Citation
Dr. Don W. Green; Dr. Marylee Z. Southard: Perry's Chemical Engineers' Handbook, 9th Edition. PROFITABILITY, Chapter (McGraw-Hill Professional, 2019), AccessEngineering Export