Profits are important so businesses can retain employees attract investors and contribute to the

Question

Business

Anika Newman

20 April, 07:21

Profits are important so businesses can retain employees attract investors and contribute to the

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Answers (1)

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Miah · Answer 1

Profits contribute to the firm's stability and growth.

Explanation:

Profit is the main motive of a firm or business entity. It is based on the numerical value of profit a firm's stability is determined. The future growth, reputation, shareholder value, market value of a firm depends on the profit.

Only when the profits are high the firm pays a higher salary to its employers and higher dividend to its shareholders. Employees not only get a monetary return on contributing to higher profits but are also motivated to stay back in the same firm.