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Why may earning profit be necessary in entrepreneurship?

Answer and explanation

Correct answer: To keep the business running and growing

Profit provides a surplus after meeting business costs. It can support wages, maintenance, reinvestment, innovation, expansion, and protection against future uncertainty. Profit does not require harming customers or abandoning social responsibility; it should be earned lawfully and ethically. Therefore, sustaining and growing the enterprise is the correct reason.

Related tags

ProfitBusiness GrowthSustainabilityEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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