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What is the role of profit in business?...

What is the role of profit in business?

Text Solution

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The role of profit in business are as follows :-
i.) Survival
ii.) Expansion and growth
iii.) Symbol of efficiency
iv.) Reward for bearing the risk
v.) Helps to gain reputation / Goodwill
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A working partner gets 20% as his commission of the profit after his commission is paid. If the working partner's commission is Rs. 800, then what is the total profit in the business?

A working partner gets 20% as his commission of the profit after his commission is paid. If the working partner's commission is Rs. 8000, then what is the total profit in the business?

Knowledge Check

  • Ram started a business investing rs 45000 .three months after he started . Anil joined him with rs 60000 . If at the end of the year the total profit in the business is rs 26000. what would be the share if anil in the profit?

    A
    10000
    B
    140000
    C
    13000
    D
    160000
  • The pie chart shows the share in profits of the year 2017 of seven partners in a business. Study the diagram and answer the following questions. What is the total Profit (in rs lakhs) of the business of the year 2017 ?

    A
    400
    B
    300
    C
    360
    D
    350
  • Which of the following domains is used by for profit business ?

    A
    .com
    B
    .edu
    C
    .mil
    D
    .net
  • Similar Questions

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    Explain the Role of Profit in the Business.

    Three persons start a business with capitals in the ratio 1/3 : 1/4 : 1/5 The first person withdraws half his capital after 4 months. What is his share of profit if the business-fetches an annual profit of Rs 96,800 ?

    A, B and C invested money in the ratio 6 : 9 : 10 for different times. If the ratio of their profits in the business is 2 : 3 : 5 then what is the ratio of their times given to the business?

    Earning profits is the sole objective of business . True / False ? Give reason.

    A and B invested Rs. 7,000 and Rs. 10,000 respectively in a business. A left the business with his money after 9 months and at the end of the first year they earned a profit of Rs. 6100. What is the share of B in the profit ?