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
