Importance Of Profit Flashcards
1
Q
Why is profit important
A
For the majority of businesses, profit is important, so that the business owners can fund the business.
2
Q
What is profit for an entrepreneur
A
The reward
3
Q
How could profit motivate staff
A
It can motivate staff, if they are on a profit sharing scheme - Or commission based on profit
4
Q
What does profit measure
A
The level of success of a business
5
Q
Is profit a guide for future investments?
A
Yes
6
Q
What does profit do for potential stake holders
A
It attracts stakeholders (as they think they’ll make a profit off of their investment)
