Monday, March 28, 2011

Is profit the main goal of business?

Profit making is the primary motive of the business. Profit plays a key role in the private enterprise system in terms of:
-    Motivating the owners.
-    Profit is the remuneration of the businessman.
-    Profit is the livelihood of the businessman.
-    Encouraging innovation.
-    Encouraging efficiency.
-    Increasing profit increases the goodwill of the business.
-    Signaling areas for expansion. Profit is necessary for the expansion and development of the business.

-    Providing the finance for expansion.
-    Providing a measuring rod of performance. It is measure of the success of the business.
Business is an activity that is directed to create values for removing wants of man in society through recurring exchange.
Profits come from the efficient production of goods and services demanded by people.

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