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There are two types of returns in business. Discuss them.

Ask by Mitchell Mitchell. in South Africa
Mar 15,2025

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There are two main types of returns in business: 1. **Financial Returns**: - **Profit and Revenue**: The money gained from investments or sales. - **ROI and Net Profit Margin**: Measures of how efficiently investments are performing. - **Dividends and Capital Gains**: Direct financial benefits for investors. 2. **Non-Financial Returns**: - **Brand Equity and Customer Satisfaction**: Enhance business reputation and customer loyalty. - **Social Impact and Employee Engagement**: Improve company reputation and workplace culture. Both types of returns are important for a business's overall success.

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When we talk about business returns, we typically refer to financial returns and non-financial returns. Financial returns are all about the dollars and cents: they measure the profitability of a venture through metrics like revenue, profit margins, and return on investment (ROI). Companies strive for positive financial returns because they directly impact sustainability and growth. On the flip side, non-financial returns encompass the broader impacts of business activities, such as customer satisfaction, brand reputation, and social responsibility. These returns might not show up right on the balance sheet, but they significantly affect long-term success. Think of it this way: happy customers often lead to repeat business and word-of-mouth referrals, making a compelling case for businesses to look beyond sheer profit!

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ECA115D/ECN105D/EA105D TEST 1 28. In economics, the "HOW" in the production question refers to a) The ways in which factors of production may be combined to produce output b) The way in which firms uses principle of profit maximization c) The way in which the state sets output targets in a command economy d) The problem of scarcity in the economy 29. Adam Smith's concept of the invisible hand suggests that the selfish actions of rational individuals will generate an efficient allocation of scarce resources a) False b) True 30. In the South African economy, the problem of "WHAT TO PRODUCE" is solved primarily by: a) The national Planning Commission b) The South African Reserve Bank c) The South African Revenue Services d) The patterns of consumers spending and direction of government 31. Problems relating to the allocation of the factors of production and the distribution of income exist: a) In socialist economies only b) In capitalist economies only c) In market economies only d) In all economies 32. Which statement best describes the economic system? a) A network of parts interlocked to form a pattern that aims at solving the What, How and For Whom questions in the society. b) Aims at studying the choices economic agents make under conditions of scarcity. c) It explains how the different types of systems are interdependent. d) Coordinating mechanism 33. Which of the following is not a common feature in classifying economic systems? a) Property rights b) Market capitalism c) Planned socialism. d) Traditional system 8
ECA115D/ECN105D/EA105D TEST 1 28. In economics, the "HOW" in the production question refers to a) The ways in which factors of production may be combined to produce output b) The way in which firms uses principle of profit maximization c) The way in which the state sets output targets in a command economy d) The problem of scarcity in the economy 29. Adam Smith's concept of the invisible hand suggests that the selfish actions of rational individuals will generate an efficient allocation of scarce resources a) False b) True 30. In the South African economy, the problem of "WHAT TO PRODUCE" is solved primarily by: a) The national Planning Commission b) The South African Reserve Bank c) The South African Revenue Services d) The patterns of consumers spending and direction of government 31. Problems relating to the allocation of the factors of production and the distribution of income exist: a) In socialist economies only b) In capitalist economies only c) In market economies only d) In all economies 32. Which statement best describes the economic system? a) A network of parts interlocked to form a pattern that aims at solving the What, How and For Whom questions in the society. b) Aims at studying the choices economic agents make under conditions of scarcity. c) It explains how the different types of systems are interdependent. d) Coordinating mechanism 33. Which of the following is not a common feature in classifying economic systems? a) Property rights b) Market capitalism c) Planned socialism. d) Traditional system 8
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