Title: Analyze the role of profit in private enterprise.
Course: Marketing (12164) > Section: Understanding Economics in Organizations

Analysis should include

- a definition of profit
- the importance of profit in the private enterprise system
- the differences between for-profit and not-for-profit organizations
- the concept that profit is important because it provides a motive for investment in business, enables the development of new products, provides for the start-up of new enterprises, allows companies to continue operating, promotes competition, and affects employment levels.

Process/Skill Questions:

- What is a profit-and-loss statement?
- How does the motive for greater profits affect the conduct of a business?
- How can changes in the political, cultural, natural and technological environments affect profits?
- What can a business do to increase profits or decrease expenses?