Divide the text into logical parts and copy out the topic sentence in each part that could be useful for composing a plan to the text

Text B

Read the text, try to catch its essentials and be ready to do the tasks.

FACTORS AFFECTING PROFIT

There are many factors that affect how much profit a business might make. Here are some of the most common.

Expenses. Expenses must be deducted from income to determine profit. The more the business's expenses increase, the lower profit will be. It is important for businesses to keep their expenses as low as possible.

Demand for the product or service. If the demand for the business's products or services remains the same or increases, profit increases too. And if demand decreases, profit decreases too.

Economy. Sometimes, the economy experiences a recession or depression – wages may be lower or people are out of work. A business's profit may be decreased simply because its customers do not have money to buy as many goods or services as in the past. The profits of businesses are more likely to increase, since more sales can be made.

Chance. Sometimes profits are affected by chance or luck. On occasion, this is good for the business. On the other hand, the chance of loss is always possible. And, even though a business is going well one year, there is no guarantee that factors, many times beyond control, will not change the profit picture.

Prices. Why don't businesses just raise their prices to cover any increase in the cost of merchandise or any decrease in demand? Actually, it is difficult for businesses to raise their prices because decreased sales might result. Customers who don't like price increases may show their dissatisfaction by not doing any further business with the company if they are able to get the same or similar products from another businesses. Because most of the businesses in the free enterprise system exist in a competitive environment, it is important that a business does not charge more than its competitors unless it gives some additional service to customers.

How to increase profit?

Profits are not fixed or guaranteed, there are many ways a business owner can help to increase profit. Increasing sales is a popular way to increase profit. Businesses try to increase sales by offering better quality products or services than competitors, by keeping prices at/or below the level of competitors, and by using promotional techniques, such as personal selling, creative displays, special sales, and advertising.

Profits can be increased when workers are more efficient. This means that workers must use scarce resources wisely. These resources include such things as time and supplies. For example, workers should spend time on the job working, rather than talking with others or taking care of personal matters. When workers are efficient, they are able to produce more for the company. Increased production can result in more sales and more profit. Many businesses reward employees for efficient work habits through monetary bonuses and other rewards. Some of the work habits, which are rewarded, are promptness, regular attendance, and superior performance. Increasing worker efficiency is receiving much attention as businesses realize just how much time and money can be saved.

Another way of increasing profit is decreasing expenses. Businesses can decrease expenses in several ways. They might consider eliminating some free services, such as delivery, gift wrapping, or alterations. Businesses must be certain that their expenditures in terms of cost of merchandise are at the best prices. Perhaps a new supplies would offer better prices or benefits than a current supplier. In addition, businesses should try to obtain the best rates for such expenses as advertising, insurance, etc., and should try to keep payroll expenses as low as possible without sacrificing service to customers. And, businesses should encourage workers to use resources wisely. For example, turning off lights and equipment when not being used and not wasting supplies. Decreasing expenses is the best way that businesses can help to increase profit.

Comments:

1. To deduct – вычитать

2. Recession – спад

3. In terms of – в исчислении

4. Rate – тариф

Дата добавления: 2014-11-29