Profits

Profit is money that a business has after paying all its expenses.

Expenses can be:

-         Wages to employment

-         The cost of supplies

-         Taxes

-         Payment on loans

Profits are necessary for business to:

-         keep the economy healthy

-         incentive to start, expand and maintain businesses

-         provide wealth for business owner and shareholders

Profits are important for employees to:

-         increased income

-         increase job security

An effective, successful business meets the needs and the wants of consumers and responds to consumer demand. A profitable business needs to be able to expand and develop new products.