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Problems of profit based measures
- Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed.
- So many different measures of profitability and profit terminology.
- Practical and political problems when addressing 'uncontrollable' expenditure.
Q. Explain about Residual income? Residual income is profit earned by a division less a "notional interest charge" for investment of finance within it.
what are the ethics of strategic management?
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bcg analyis matrix of mcb bank
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