Every businessman runs his business with a profit motive. Profit gives the motivation to succeed. The profit helps a business to maintain its stability. The profit helps in its operation. growth and expansion. A business can only be evaluated by how much profit it has earned. According to Adam Smith – “Profit is that magic which can turn selfishness of man into useful services. Therefore, it is clear that if the business won’t earn profit then people won’t be able to get goods and services.”

Profit is counted foremost because of these reasons: 

1. Profit is motivation – 

Every person enters into business with profit motive only. They fulfil their needs through profit only. Profit is that element which motivates the businessman for any activity. If the business has low profits, then he won’t take interest in the business and the result would be the problems that would be faced by the businessman. 

2. Profit is Return of Services – 

Like other people, the businessman also works hard to run his/her business. Therefore, the profit is just the return of his/her hard work. 

3. Profit is the Base of Exchange:

The exchange of goods and services is done for mutual profit only. Therefore, the give and take in business include profit only. If there won’t be any profit than the exchange would stop and some people would have unnecessary goods, while some others might not even have the necessary goods. 

4. Means of supply of Individual necessities – 

Everybody has to fulfil his/her family needs. These needs can only be fulfilled with the profit earned. The existence of needs proves the existence of profit. 

5. Measurement of Business efficiency – 

The skill of any business and businessmen can be measured through profit only. If it earns a profit, then it is assumed that the business is running properly and resources are being utilized efficiently.

In a nutshell, profit is considered to be the main source of any business. Loop has stated profit as the main part of business, but some people are against this statement. According to them, profit earning is not the only motive of any business. Rather, it is only a part of the activity of the business.