Question

_ Deepak Enterprises Ltd. has been earning high profits over the years by taking risks. As a
result, its owner Mr. Deepak is leading a good standard of life and enjoying good reputation
among friends and relatives. Moreover, he plans to open new branch office in a few months.
In context of the above case identify the different points highlighting the role of profit in
business being discussed by quoting the lines in the above paragraph. 5
Dista​

Answer 1

Answer:

please tell which subject is this question from?

Answer 2

The profitability of a business is important because profitability affects the way a company can secure bank financing, encourage investors to fund its operations and expand its business. Unless companies turn a profit, they cannot stay in business. However earning profits cannot be the only aim of a business. In the above case the role of profit here  has helped raise Deepak's standard of living

Explanation:

• In relation to capital investments, profitability relates to profit. While profit is not the sole aim of enterprise, its importance must not be overlooked. In the given market conditions, every company tries to gain maximum profit.
• In order to guarantee business' sustainability, growth and development over time, profits must be obtained. Only if the company performs useful services for society can consistent and sustainable profit be gained. For different purposes profit may be regarded as an integral business goal.

1. It provides business people with income.
2. It can be a source of funding to meet business expansion needs.
3. It indicates the successful functioning of the company 
4. It can be considered as society's acceptance of the business' utility.
5. It builds the reputation of a company