If a Firm Wants to Increase Profits, It Can Attempt

question 181

Essay

If a firm wants to increase profits, it can attempt to (a)increase revenues, (b)decrease expenses or
(c)do both. What profit enhancement option strategies could be used by a local bank to increase revenues?

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Definitions:

Business Model Test

The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

Cash Flows Characteristics Test

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest.

Financial Asset

An intangible asset deriving value due to a contractual claim, such as cash, stock, bonds, and bank deposits.

Objective Evidence

Objective evidence refers to information, facts, or data that can be quantifiably measured or verified, uninfluenced by feelings, interpretations, or bias.