InvestorQ : in which business why it essential to make a profit. a) commercial industry b) it provide funds for future extension c) it increase the reputation of a company d) all the above
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in which business why it essential to make a profit. a) commercial industry b) it provide funds for future extension c) it increase the reputation of a company d) all the above

Answer
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Roshni Hegde answered.
3 months ago


Earning a profit is important to any business. Earning a level of profit gives an idea of whether a company can secure financing from a bank, attract investors to fund its operations and grow its business.

We must understand it clearly that companies cannot remain in business without turning a profit. Before owning a business, one must know the significance of profitability in business management and develop strategies that results in the best chance at remaining profitable.

Why essential to make profit? Your provided all options closely fit in for the answer.

Profit helps to expand business operations

Increases the ability to borrow money

Attract finances 

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