Explore BrainMass
Share

Explore BrainMass

    Motivation for Profit and loss

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Discuss about the role that profit and loss plays in a competitive market. Other than making the owners rich or poor, depending on if they make a profit or loss, what is the role that profit and loss plays?

    Question
    Why do we need profits, and why do we need losses?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:21 am ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/profits-competitive-markets-578054

    Solution Preview

    Profit is often the single most important objective of any business entity. We always say the objective of a firm is to maximize profit. In this sense we can say that profit is a motivation for firms to stay in business. This is good for the economy for few reasons. Among the the reasons are; they create jobs for public and they provide choices of ...

    Solution Summary

    This solution of 241 words discusses how profit is a motivation for firms to stay in business and discusses the requirement of losses.

    $2.19