BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Making a profit is essential for a business that desires to expand it operations. Earning a profit allows you to open other business locations, acquire another business, target other markets and expand your operations into foreign territory. The purpose of business expansion is to further increase your profits.

Detailed explanation-2: -Profitability is a measure of an organization’s profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a less-efficient organization, which must spend more to generate the same profit.

Detailed explanation-3: -What is profitability? Profitability is the ratio between a business’s income and its expenses. A business determines its income by calculating the money the business generates through its operations and activities.

Detailed explanation-4: -Profitability is a measurement of profit. You use profitability to determine whether your business is yielding enough profit to sustain and grow. There are a few different profitability ratios you can use that measure aspects of your business’s success: Profit margin ratio. Gross margin ratio.

Detailed explanation-5: -Profit is the amount that the company has left over after paying the expenses. Profitability is how well the company is using the resources that it has in hand to generate revenues. It tells the shareholders how much return the company is giving them for their investment.