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.
Frequently asked questions
What is the correct answer to this question?
To keep the business running and growing
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
