asked 184k views
5 votes
3. Earning of profit is regarded as the main objective of business? Explain by giving any 3reasons

1 Answer

0 votes
Profit maximization is usually a main aim of most businesses in the private sector.

1) Usually people invest personal savings into starting businesses so that the return (aka profits) can be greater than the investment and they can earn a better living.

2) If profit is earned then the business would have enough money to pay dividends to its investors/shareholders, otherwise it wouldn’t have enough money to give as dividends and it will lose its investors.

3) Profit is required for the business to survive in competitive markets.
answered
User Max Romanovsky
by
7.4k points

Related questions

asked Oct 26, 2022 164k views
Jeena asked Oct 26, 2022
by Jeena
7.7k points
1 answer
3 votes
164k views
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.