Meaning and Importance of profit Flashcards
1
Q
what is meant by profit
A
profit is the financial gain that a business makes from providing goods and services
2
Q
what risk may starting up a business bring?
A
-risk your own money
3
Q
what reward does a business get from taking risks?
A
achieving profit
4
Q
what does high profit show?
A
shows the business has been successful during the period measured.
5
Q
What ways can profit be used?
A
- owners may take out profits for their own benefit
- profits may be retained in a business
6
Q
why is retained profit good for a business?
A
fantastic source of finance for business - it is instantly available and does have to be repaid
