Profit it is the _______for the risks and efforts undertaken by a business firm.
A. Reward
B. Investment
C. Goodwill
D. Image
Answers
Profit it is the Reward for the risks and efforts undertaken by a business firm.
A. Reward
Answer:
Option (A) Reward is the correct answer.
Explanation:
In all business enterprises in the private sector, the main aim is to earn profit. Profit is the driving force ahead and after entering into the business field. Profit is the oil painting that drives the bus of business. Profit is the total profit from deals minus the total cost of coffers employed by the entrepreneur. The part of the profit in business can be judged from the following points.
1. Sources of Income
Investors invest their plutocrats in the business with the sole purpose of earning a profit, since profit is a source of income, it thus provides the possessors of business the mean with which they and their family members can live a comfortable life.
2. durability of Business
The incitement of earning profit keeps the man engaged in business conditioning. A business can only grow and gain strength if it earns a profit. So, earning profit is necessary for the durability of business.
3. Expansion of Business
One of the places of profit in business is that a businessman retains and reinvests a part of their gains in business undertaking and stands on sound footing. It can expand and diversify business not only from reinvestment of finances but also by getting loans from external sources for business.
4. price of threat Bearing
Profit is the price for bringing new products or processes to the request. It's a price for a threat successfully accepted. Profit, thus, is a price for the future which is uncertain.
5. Profit and Economic Development
Another part of the profit in business is profitable development. Profit and profitable development are nearly related to each other. If the enterprises aren't earning profit also there's no profitable progress in the country. If there's no profitable development, there's no profit to the business.
6. Profit Acts as Measure of Efficiency
Profit acts as an indicator of performance for business if the business enterprises are earning gains. It shows that the country is progressing satisfactorily
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