Profit is a key measure of firm performance. Recently investors in the capital markets depend on firm's EPS figures to evaluate firm's profitability. In the article of "Pacioli", he suggested that...

Running Head: ADVANCED ACCOUNTING                        1
ADVANCED ACCOUNTING        5
ADVANCED ACCOUNTING
Table of Contents
1. Implied Meaning of "Reasonable Profit" and its Association to "Business Goals or Mission"    3
2. Corporate Social Responsibility (CSR) and its Relation to Implied Meaning of Reasonable Profit    4
References    5
1. Implied Meaning of "Reasonable Profit" and its Association to "Business Goals or Mission"
Father Luca Pacioli initiated the double side book keeping theory. He stated that every business has focus and that is to make lawful and reasonable profit. He has not explained the term “reasonable profit”. Whereas, the term reasonable implies the upper bound in the profit. The concept of reasonable profit is also defined by International Monetary Fund (IMF). It is profits only above some threshold rate of return. As mentioned by Gribovsky (2019), another approach of the US government bureaucrats referred reasonable profit, as excess one would be to allow market competition to work.
For example, if the profits made by charging 2 % transaction fees on credit cards are so unreasonable and excess that they would attract competitor and new entrants claiming the if customer accept new card with MasterCard or Visa card then the transaction fees will be 1 % instead of 2 %. It is due to the fact the company is not making any unreasonable profit and excessive gain. Sepehri, Karimipouya and Zarin (2016) have described today’s organization...