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Which statement correctly explains the profit aspect of an organisational objective?

Answer and explanation

Correct answer: Profit is needed for taking risks and making future investment

Profit is an economic objective that supports the continuity and growth of a business. It compensates owners for risk, provides funds for reinvestment, helps meet future uncertainties, and supports expansion. Thus option A is correct. Profit is not unrelated to an organisation, is not merely a social objective, and is not inherently unethical when earned lawfully and responsibly.

Related tags

ProfitOrganisational ObjectivesRiskInvestmentObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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