Profit FormulaThe second element within the business model is the profit formula. This refers to the process employed by the business that identifies how it will generate value for its shareholders while also offering value to customers.Anmomportant component within the profit formula is the revenue model. This determines what price you should charge at a given volume of sales in order to cover your overhead or fixed costs so as to reach break-even and achieve any desired profit margins.The profit impact on all sides of the business, activities that directly affect the financial situation of the enterprises, the implementation of the target profit is an important condition to ensure your business's financial situation was stable, solid.Profit is a general quality criteria speak up results of the entire business activity of the business. If the enterprise strive innovation, improving the efficiency of production and business activities make lower product prices, the profit will increase directly. Conversely, if the price rises, then the profits will decline. So is the most important norms impact on all matters of business, decided the existence and development of enterprise, simultaneously taking advantage nhhuận directly affect the financial situation of the enterprises, the assessment criteria is the quality of production and business operations of the enterprisethe conflict between pursuing profits and 2 other elements is the active process and customer value search engines requires the company to pay out to meet (for example, buy machinery, select raw materials, such as the required training customers desire, employees ...) and the Profit is about his money recovered after providing the service or product
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