Final answer:
Profit is essential as it motivates individuals to start businesses and is the key metric for a business's viability. Lack of profit can lead to a business ceasing operations. The desire for profit encourages expansion and attracts new entrants to a market.
Step-by-step explanation:
Profit is the desire to make a profit, and it isn't greedy. It keeps businesses in operation. Profit is the measurement that determines whether a business stays operating or not. Individuals start businesses with the goal of making profits, investing money, time, effort, and various other resources to produce and sell goods or services. Unfortunately, not all businesses are successful, leading many start-ups to realize that their business venture must sometimes end.
Businesses that are unable to generate a profit may cease to exist because they cannot sustain operations. Profit serves as an incentive for existing businesses to expand and for new businesses to enter the market—this is known as entry. In this way, the potential for profits drives the competitive nature of the market, spurring growth and innovation.