Question

what is the profit role of business​

Answer 1

Answer:

Profit is the surplus revenue after a firm has paid all its costs.

In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs.

For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products.

So, profit is the backbone of the business

The main aim of the business is to earn profit....

A business cannot survive without profit

So , in this way profit plays an important role in business

Answer 2

Answer:

Profit is the surplus revenue after a firm has paid all its costs. Profit can be seen as the monetary reward to shareholders and owners of a business. In a capitalist economy, profit plays an important role in creating incentives for business and enterpreneurs.