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Profit is a financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business.
The cost of doing business refers to all the expenses incurred by a firm or a sole proprietor in producing and selling goods or services.
Profit is the monetary return a business' owner receives for taking the risk of investing in the business. In simple terms, profit equals income less expenses. More specifically, there are two types of profit: gross profit and net profit. Gross profit is the money left over after the cost of goods is subtracted from income from sales. Net profit is the money left over after operating expenses are subtracted from gross profit.
Factors that affect profit include the demand for the good/service, expenses, prices, the economy, and chance. To try to increase profit, a business can increase worker efficiency, increase sales, and/or decrease expenses.
chain of command, organizational flow chart system, and hierarchy of management within an organization
chain of command. The order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization. Instructions flow downward along the chain of command and accountability flows upward. An organizational chart shows the internal structure of an organization or company. The employees and positions are represented by boxes or other shapes, sometimes including photos, contact information, email and page links, icons and illustrations. Straight or elbowed lines link the levels together.
Organizational hierarchy
The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence.
MANAGEMENT IS THE PROCESS OF REACHING GOALS THROUGH THE USE OF HUMAN RESOURCES, TECHNOLOGY, AND MATERIAL RESOURCES. TO FACILITATE EFFECTIVE MANAGEMENT, BUSINESSES ARE ORGANIZED IN TWO WAYS:
1. VERTICALLY
=TOP MANAGEMENT ARE THOSE WHO MAKE THE PLANNING DECISIONS THAT AFFECT THE WHOLE
COMPANY. TOP MANAGEMENT JOB TITLES INCLUDE:
= CHIEF EXECUTIVE OFFICER
= PRESIDENT
= CHIEF OPERATING OFFICER
= VICE PRESIDENT
=MIDDLE MANAGEMENT IMPLEMENTS THE DECISIONS OF TOP MANAGEMENT. THEY COMMUNICATE WITH AND SUPPORT SUPERVISORY-LEVEL MANAGERS.
=SUPERVISORY-LEVEL MANAGEMENT SUPERVISES THE ACTIVITIES OF EMPLOYEES WHO CARRY OUT THE TASKS DETERMINED BY THE PLANS OF MIDDLE AND TOP MANAGEMENT. THEY ASSIGN DUTIES AND EVALUATE THE WORK OF PRODUCTION OR SERVICE EMPLOYEES.
2. HORIZONTALLY - HORIZONTAL ORGANIZATION INVOLVES
SELF-MANAGING TEAMS THAT SET THEIR OWN , GOALS AND MAKE THEIR OWN DECISIONS.
THIS TYPE OF MANAGEMENT STRUCTURE IS ORGANIZED BY PROCESS INSTEAD OF
FUNCTION AND IS CUSTOMER-ORIENTED.
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