ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The main objective of any business is to earn a profit. Just as a plant cannot survive without water, similarly a business cannot sustain without profit. Profit is necessary for growing and expanding business activities.

Detailed explanation-2: -The ultimate goal of any corporation is to make money. Money is generally made at the expense of some other corporation or in business speak: “taking someone else’s share” or “creating a need or want” in the market.

Detailed explanation-3: -Your profit goal is the amount of money you need to meet the commitments that are important to both you and to the future of your business.

Detailed explanation-4: -Profitability refers to profit in relation to capital investment. Although, earning profit cannot be the only objective of business, its importance cannot be ignored. Every business makes an attempt to reap maximum profit as possible in the given market conditions.