Sample paper 2 questio 20

Yes,I totally agree with the given statement & can justify it in the following manner: 1.Survival: A proprietor can't survive for long without earning adequate profit. It is the proprietor's income & source of livelihood. 2.Expansion & Growth: A business can expand & grow only by earning sufficient amount of profits. Large amount of profits helo the proprietor invest more of it in the firm & keep some aside as a reliable source if fund for future needs. 3. Reward for bearing the risk: The proprietor invests in the business with the intention of earning profits. This involves risk as the firm might incur losses as well. Thus, profit is the reward for bearing this risk. 4. Symbol of Efficiency: A company earning good amount of profits proves the excellence in their management skills whereas lower amount of profits depict inefficient management of the firm. Thus, the amount of profits earned judges the management skills & efficiency of the firm.