Question

What are the reasons that the business person is able to make a huge profit in the market?

Answer 1

Hint: A business person is an individual who is involved in the works of the business structure, especially at an executive level. An example of a business person is an entrepreneur who sets up a new business in the hope to gain profit.

Complete Step by Step Answer: Profit is equal to a company’s revenue deducting the expenses. Profitability is important as it impacts whether a company can secure financing from a bank or attract investors for funding. So, earning a profit for a business is of absolute importance. The reasons to make a huge profit in the market are as followings:
a. The conditions are in favour of a business person as he carries his business on his own terms and any failure to meet these demands are dealt with utmost importance. Also, the poor sections depend on the rich for various reasons such as all means of production and capital.
b. They also cut down costs by getting maximum work done by the employers/workers at the lowest possible wages. This helps in maximizing their profit.
c. The business mostly tries to attract the high-income people and also the moderate sections.
d. He is able to sell a large number of his products every day by manufacturing more with the help of his workers.
e. They also buy products from producers at low prices and sell them at high prices.
f. He also has a strategy to get work done by the exporters at the lowest possible price.

Note: Companies or industries cannot remain in business without earning a profit. So you should take a note on how these business people function and their strategies to gain profit in the market.