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Why is profit often regarded as an essential objective of a business?
  • a)
    To attract more customers
  • b)
    To maximize shareholder wealth
  • c)
    To avoid legal issues
  • d)
    To indicate efficient business operations
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Why is profit often regarded as an essential objective of a business?a...
Profit is often seen as an essential objective of a business because it signifies the efficient functioning of the business. It indicates that the revenue generated surpasses the costs incurred, showcasing effective management and operations. Additionally, profitability can lead to various benefits such as reinvestment for growth, shareholder dividends, and overall sustainability.
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Why is profit often regarded as an essential objective of a business?a) To attract more customersb) To maximize shareholder wealthc) To avoid legal issuesd) To indicate efficient business operationsCorrect answer is option 'D'. Can you explain this answer?
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