Question

THINK LIKE A BUSINESS MAN Which would you prefer, purpose or profit?​ Why? Expound it properly​

Answer 1

Explanation:

BUSINESS BUSINESS ESSENTIALS

Is Profitability or Growth More Important for a Business?

FACEBOOK

TWITTER

LINKEDIN

By J.B. MAVERICK

Fact checked by YARILET PEREZ on July 11, 2021

TABLE OF CONTENTS

EXPAND

Profitability

Growth

The Bottom Line

To be successful and remain in business, both profitability and growth are important and necessary for a company to survive and remain attractive to investors and analysts. Profitability is, of course, critical to a company's existence, but growth is crucial to long-term survival.KEY TAKEAWAYS

When evaluating a company, what should you weigh heavier: profitability or growth?

A growing company may not be earning any profits yet, but may nevertheless provide a great investment opportunity.

Other times, a lack of profitability can be a huge red flag that something is wrong with the firm.

Profitability

A company's net profit is the revenue after all the expenses related to the manufacture, production, and selling of products are deducted. Profit is "money in the bank." It goes directly to the owners of a company or shareholders, or it is reinvested in the company. Profit, for any company, is the primary goal, and with a company that does not initially have investors or financing, profit may be the corporation’s only capital.