Q.Profit, as an economic objective of business, is best understood as:
(A) The sole purpose for which a business exists
(B) A reward for risk-bearing and a necessary source of funds for survival and growth
(C) An objective that has no connection with a business's social duties
(D) A fixed amount guaranteed to every business regardless of performance

This chapter treats profit as a necessary, but not the only, objective of business — it rewards the risk the entrepreneur takes and funds future survival and growth.

Work through each option against the rule stated above; the chapter is explicit that profit alone, chased at the expense of every other objective, does not sustain a business for long.

Section 2 of this chapter explains that earning profit is a necessary economic objective because it rewards the entrepreneur for bearing the risk and uncertainty of running the business, and it supplies the internal funds needed for survival during difficult periods and for financing future growth. At the same time, the chapter is explicit that profit is a MEANS to survival and growth, not the business's only legitimate purpose — a business that chases profit alone while ignoring customers, employees, or the law does not sustain that profit for long.

Option-by-option analysis:

• (A) Incorrect — treating profit as the sole purpose ignores the social, human, national and global objectives this chapter equally requires.
• (B) Correct — this matches exactly how the chapter frames profit: a reward for risk-bearing and a source of funds, necessary but not exclusive.
• (C) Incorrect — profit and social duties are connected, not separate; a business earning profit through exploitative practices undermines its own long-term position.
• (D) Incorrect — profit is never guaranteed; a business can just as easily make a loss, which is exactly why profit is described as a reward for RISK.