Profitability is the ability to provide financial rewards sufficient to attract and retain financing.

Question

Quizplus · Accepted Answer

Profitability is directly related to the ability to generate enough financial returns to make investment in a company or project worthwhile. If a company or project is not profitable, it will struggle to attract and retain financing, as investors will seek better opportunities elsewhere. Therefore, profitability is important for sustainability and growth.

Profitability Is the Ability to Provide Financial Rewards Sufficient to Attract