14 Identify and explain two possible reasons why profit is important for this ... [4]

[BASEL Moderator]

Rafiq is the Operations manager at a small factory. The business makes a range of soft drinks using batch production. Last year Rafiq successfully introduced just-in-time inventory control, based on an idea from one of the 40 employees. As the business is planning to expand, Rafiq thinks it would be a good idea tonchange to flow production.

table income statemet.JPG (16.29 KiB) Viewed 552 times

14 Identify and explain two possible reasons why profit is important for this business.[4]

Possible KN Points:
• Retained profit
• Measure of performance
• Source of finance
•To attract/keep investors