Why do businessman earn profit?
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Earning profit is important to businessman because profitability impacts wheather a company can secure fanancing from a bank, attract investors to fund its operations and grow its business. Companies can't remain in business without turning a profit.
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Explanation:
- Profit equals a company's revenues minus expenses.
- Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business.
- Companies cannot remain in business without turning a profit.
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