The Importance of profit could be seen , in the different roles, profit plays to different stakeholders.
In the economy profit plays a lot of roles that are beneficial to different groups. Such as
a. Business
b. Consumers
c. Society .
With Profits earned by investing money and taking risk, a business can
Renovate It's Facilities and equipments to keep them in running order and at peak efficiency.
Expand its Operations by enlarging each products lines or building new and better building machines and equipments.
Rewards it's owners through the redistribution of the profit.
Profit Influences the Continuity of the business and it's size of operations.
The Consumers here refer to the private citizens.
a. Profitable Business offers jobs and career opportunity to the citizens. (Private Individuals).
b. It provides income for individuals.
Source
Government (Federal, State, and Local ) task the Profit of businesses. These makes some funds available to pay for services that the society requires. Profit Provides a proportion of funds required for " National Defence, Building Courts and Law Enforcement, Education, and Public Utilities required for a healthy Nation and Economy.
