Top 6 Reasons for Limiting Profits
The following points highlight the top six reasons for limiting profits. The reasons are: 1. To Discourage Potential Competition 2. To Develop Public Relations 3. To Restrain Wage Demands of Organized Labour 4. To Maintain Customer Goodwill 5. To Maintain Control 6. To Maintain Pleasant Working Conditions. Reason # 1. To Discourage Potential Competition: The economic rationale for profit restriction is [...]