Profits are defined as the difference between the income
of a business and its expenses. Increasing profits is important for a couple of
reasons. First, if a business is not making a profit over time, then it will more than
likely go out of business. Profits reward the owners of the business, whether it be
private owners or shareholders in a company that are rewarded with higher
dividends.
If profits are not returned to the owners, they
are usually reinvested in the business. This can have a positive effect . It can lead
to new or improved products for the business. It can also mean better working
conditions for employees and better wages. Profits can also be used altruistically by
helping local communities, which could mean positive feedback from the public and
increased business.
No comments:
Post a Comment