To be profitable,a company must generate revenues to cover costs incurred throughout the entire value chain.

Question

Quizplus · Accepted Answer

This statement is true. In order to generate profit, a company must generate enough revenue to cover all the costs incurred in the production, distribution, and marketing of its products or services. This includes the costs of raw materials, labor, transportation, advertising, and other related expenses. If the revenues generated are less than the costs incurred, the company will operate at a loss and eventually go out of business.

To Be Profitable,a Company Must Generate Revenues to Cover Costs