Writing Resources
Introduction 1 Describe what is profit and why this is important to organizations Profit is an amount of money earned by business organizations as a result of products sold and services rendered Mathematically profit can be expressed as PROFIT TR TC Where TR Total revenue income TC Total cost If TR TC companies enjoy profits If TR TC Business Companies face loss From the above mathematical relationship we can understand that business firms can maximize profit only and if only their companies TR exceeds TC hence it is the duty of every business enterprises to design viable business strategies towards ensuring maximum profit Importance of profit to organizations Profit is lifeblood of every form of business enterprises be it sole proprietorship partnership or corporations Because it is through profit a company can be able to survive sustain and expand Thus profit is crucial for any form of business organization for the following reasons It helps organizations to purchase raw materials settle their employees salaries and pay debts It helps to get a competitive advantage by enhancing product development and marketing research thereby adapting creative technologies and contemporary methods of production Companies with adequate profit status can invest in new market territories and tap large segment of buyers by opening new branches production facilities and sales outlets Describe what is CSR In order to understand the essence of CSR it is worth recalling the definition of marketing Marketing narrowly can be defined as a societal and managerial activity by which individuals or groups exchange products of value so as to satisfy their needs and wants
