Profits allow a company to ________.

Question

Quizplus · Accepted Answer

Profits provide a company with additional funds that can be invested in increasing productivity, such as purchasing new equipment or hiring additional employees. Lowering employee wages would not lead to increased profits in the long term and would likely lead to decreased productivity and employee morale. Reducing the span of operations would likely lead to decreased profits as well, as the company would have fewer opportunities to generate revenue. Disregarding concern about expenses would not be a sustainable strategy for generating profits.

Profits Allow a Company to ________