the success of a business concern depends upon the way in which its earnings are computed,distributed and retained statement?
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Yes, the computation and distribution of earnings are very important in finding the profit margin of the company. Its profit ratio or the profitability is very important to continue working.
Explanation:
- Businesses cannot be usually working for longer periods of time due to the fact that profit making is the first priority to any business.
- The amount of profit made by the business is not the only way to define the business' success.
- After a point of time when the business reaches higher than being profitable, the business should see other options to grow.
- By either looking into different streams or by earning high number of investors business can be increasing in growth.
- Therefore it is pretty understandable that businesses do not only depend on profits but also on growth.
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