“Profits play an important role in the business'". Give any four reason to justify the statement

The main motive of any business is earning reasonable profits.
Importance of profit can be justified by following reasons
(i) Source of Income for Businessmen Profit is a source of income for the businessmen, as it is the excess of revenue over cost.
(ii) 'Index of Performance If a business is managed efficiently, it will earn profit. Profit is a indicator of performance and success of a business.
(iii) Source of Funds for Business Growth Profits can be reinvested in business and is a good source of finance for expansion and growth of business.
(iv) Reward for Risk Taking An entrepreneur invests money and assumes risk in a hope of earning sufficient profits. Profit is a reward for bearing these risks.