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?
Why do we need profits, and why do we need losses?
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 ...
This solution of 241 words discusses how profit is a motivation for firms to stay in business and discusses the requirement of losses.