Write a 2 page essay on For-profit organization.It is illustrative to examine the difficulties behind adopting this particular accounting procedure. The Volvo Group has a number of divisions: Volvo Tr

Write a 2 page essay on For-profit organization.

It is illustrative to examine the difficulties behind adopting this particular accounting procedure. The Volvo Group has a number of divisions: Volvo Trucks, Volvo Buses, Volvo Construction, Volvo Penta, Volvo Aero and Volvo Financial Services. Volvo is primarily a vehicle and automobile manufacturer, but its finance website offers leases and finance solutions, meaning that accounting is doubly important for the firm (Volvo AB, 2011). Volvo had an excellent year across all departments: “During the fourth quarter of 2010, the Volvo Group continued to grow at a good pace with higher sales in all regions, improved profitability and a very strong cash flow. Year-on-year sales were up 23% to SEK 73.4 billion. Operating income improved to SEK 5.5 billion and the operating cash flow from Industrial operations amounted to SEK 15.1 billion. As a result of improved profitability and strong cash flow, net debt in the Industrial operations is now down to 37% of shareholders’ equity, which is in accordance with our objective”.