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What is the role of profit in business? - Business Studies

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What is the role of profit in business?

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उत्तर

Earning a profit is the sole motive of any business activity. It is not possible for a business to sustain itself for a long time if it does not earn sufficient profits. This is because, for a business to continue, a part of profit has to be reinvested in the business. Reinvestment also ensures the growth prospects of a business and enhances its future profit-earning capacity. Profits are regarded as the reward for undertaking the risks associated with a business. If a business is not earning profits, then it is considered a non-viable venture.

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Role of Profit in Business
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पाठ 1: Business, Trade and Commerce - Short Answer Questions [पृष्ठ २६]

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एनसीईआरटी Business Studies [English] Class 11
पाठ 1 Business, Trade and Commerce
Short Answer Questions | Q 12 | पृष्ठ २६
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