Concept and function of profit.

 Business is an important function of the economy. There are many objectives of the business. These objectives are Survival, Sale revenue maximization profit maximization, and so on. Every objective is important and organizations want to achieve it. Among all profits, maximization is also an important objective that an organization wants to achieve.

Nature of profit : 

1. It is an important part of the economy.

2. It is a financial approach. 

3. It retains all many factors.

4. It is the field of the financial year.

* Objective and Function :

Profit is an important part of the business. There are many functions of profit performed. These function areas are below.

1. To increase production - It is the first function of profit. There are many elements of production. These elements are land, labor, raw material, finance, and so on. Profit gives us maximum finance ao it helps us to maximize the production of an organization. 

2. Development - It is the second function of profit. Every organization wants to develop and grow. There are many innovative policies, rules, regulations ideas required to perform it profit gives us finance that is used by the manager to make, implement, and execute innovative ideas, policies to get development.

3. Effective function - There are many functions of the business. These functions are Production, Demand forecasting, Supplying, Pricing, Advertising, Warehousing, Communication, trading, Distributing, and so on. Profit gives us maximum finance that is used to perform the above function in an effective, efficient way.

4. Research - Research is also an important function of the business. Research gives us new ideas, opinions, thought, visions to perform the function of the business. Research requires maximum finance so without getting profit organization may not be do it.

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