Profits and losses play an important role in helping a. to signal to government which businesses are suffering losses so that they can be subsidized. b. consumers decide which products they value the most by looking at each firm's profit. c. direct businesses toward productive projects and away from ones that are productive. d. ensure that the total profits in the economy exactly equal the total losses.

Question

13-09-2019
Business

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Profits and losses play an important role in helping a. to signal to government which businesses are suffering losses so that they can be subsidized. b. consumers decide which products they value the most by looking at each firm's profit. c. direct businesses toward productive projects and away from ones that are productive. d. ensure that the total profits in the economy exactly equal the total losses.

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norvysgonzalez norvysgonzalez · Answer 1 · 2019-09-13T18:02:05+02:00

Answer:

Profits and losses play an important role in helping direct businesses toward productive projects and away from ones that are productive.

Explanation:

That is the essence of accounting and finance monitoring that the efforts that the company is carrying out are compensating with the corresponding profits; If this is not the case, we make corrections or start new projects. Knowing profits and losses, we can know if a business is viable or not.