Question

explain the role of profit in business
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Answer 1

Explanation:

A result of a business is profit. Thus the main role of Profit is to help the businessman earn his living. Increasing Efficiency: Profit acts as a motivating factor. ... Profit in this case acts as a reward for the risk taken by the businessman.

Answer 2

Profit is the sole driver of a business.

Explanation:

• A business can be defined as an economic activity that creates utility in return of profit over investment.
• A business is classified as a business only when its main objective is to earn profit from the sale of its products.
• Profit is the sole reason and the source from which a business can continue its operations.
• If a business is unable to earn profits in the long run, it might have to shut down its operation due to a lack of funds.