How to use the profit of a business?



How to use the profit of a business?

The main aim of the business is to earn profit. Businessman employs the 4 factors of the production in order to earn sufficient profit. When the business is able to earn profit it has the liberty to spend it in a way they like.

The business may spend its money in different ways:

The owner may reinvest its money into the business in order to expand the business

The owner may keep the profit for himself






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