All companies have a responsibility to be profitable so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.
The basic aim of all commercial endeavors is profitability. Without profitability, the company won't last much longer. Therefore, predicting profitability of the company and analyzing past and current profitability both are crucial.
Revenue and expenses are used to evaluate profitability. Revenue is income that the business makes through its activities. For instance, money is generated when livestock and crops are produced and sold. However, money which enter the business through operations like borrowing the money does not produce profitability. The company and the borrower are simply transferring cash in order to raise money for the capital investment project or the acquisition of assets.
If a company is profitable then only it will be able to provide return to all its stakeholders and create jobs for the community.
The complete question is here:
All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.
a) offer the lowest price
b) be profitable
c) obey their customers
d) provide the largest selection possible
e) pay employees more than minimum wage
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