One of the primary purposes of a profit is to provide funds during downturns in the business cycle. Often referred to as the economic cycle, there are two types of cycles. The first is industry related. The second is broader in scope and is economy wide.
A third factor in determining a fair profit percentage is risk. Risk is divided into two types. The first is insurable and the second is uninsurable risks. Insurable risks are mitigated and have very little […]