Answer:
Profits contribute to the firm’s stability and growth.
Explanation:
Profit is the main motive of a firm or business entity. It is based on the numerical value of profit a firm’s stability is determined. The future growth, reputation, shareholder value, market value of a firm depends on the profit.
Only when the profits are high the firm pays a higher salary to its employers and higher dividend to its shareholders. Employees not only get a monetary return on contributing to higher profits but are also motivated to stay back in the same firm .
