Ganga Ltd. Is a popular company manufacturing water coolers . Its product is very much liked by people in the market . The traders are in a race to become the company 's distributors . The company had been earning huge profits for many years . However , in the year 2018 , the company 's half yearsly report shows a great decline in the company 's profit . The top management is worried about this . A team of specialists from outside is appointed to solve this serious problem . After a thorough examination , the specialists presented the following reasons for the decline in the profits of the company.
(i) Increase in competition and change in taste of the consumers.
(ii) Theft of cash and goods by the employees. Identify and explain the two causes of decline in profits.

Explanation

Two causes of decline in profits :
(i) Economic causes : " Increase in competition and change in taste of the consumers. "
Economic causes such as fluations in demand and prices ,competition , change in technology or method of production , etc . may also result in losses.
(ii) Human causes : " Theft of cash and goods by the employes. "
Human causes of business include carelessness or negligence of employees , theft strikes , riots, misappropriation of cash and goods , etc.