Question

Gd Afternoon Mates !
Ques:"Profit plays an important role in business".Give 4 reasons to justify the statement.

No copied answer will be accepted.
Either can take help from Google.

Have a great day ahead....​

Answer 1

1. Profit can help to keep investing in more machinery.

2. More Profit helps a person to fulfil more of his desires as well.

3. In business, Profit may help one to expand his/her businees with help of ads and Commercials.

4. One can buy more inputs and Labour to increase the productions.

Mark As Brainliest! Cheers!

Answer 2

Answer:

The main motive of any business is earning reasonable profits.

Importance of profit can be justified by following reasons

(i) Source of Income for Businessmen Profit is a source of income for the businessmen, as it is the excess of revenue over cost.

(ii) 'Index of Performance If a business is managed efficiently, it will earn profit. Profit is a indicator of performance and success of a business.

(iii) Source of Funds for Business Growth Profits can be reinvested in business and is a good source of finance for expansion and growth of business.

(iv) Reward for Risk Taking An entrepreneur invests money and assumes risk in a hope of earning sufficient profits. Profit is a reward for bearing these risks