Question

Earning profit is considered to be an essential objective of every business because

Answer 1

Answer:

Profit provides a vital incentive that helps the business to continue successfully and run operations smoothly.

Profit is also essential for covering the costs and risks of an organisation

Explanation:

Answer 2

Explanation:

Profit is much more valuable than the assets of the company. ... Lenders, investors, andvendors all use profit as a tool to measure how good management is in running their business. Ability to pay down debt -

Profitability, if not used to grow assets, can pay down debt. Businesses without profit cannot pay down debt.