Importance of Business Profitability in the Entrepreneurial Activity.

Written by:Diomer Antonio Galán Rincón.

Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.

Nowadays, Organizations are characterized by being wide and varied, which generates that any effort undertaken to optimize their operation is directed towards the demand of great openness, energy for change, constructive ideology, technical disposition and, above all, an entrepreneurial attitude.

This being the case, it is clear to define that for an effective operative development it is necessary to have the necessary financial tools that allow you to visualize the steps to follow in order to meet the expected profitability objectives.

As in the case of producing corn silage, this type of feed represents an advantage for producers, in terms of economy and yield, since they will always have the necessary nutrients even in the event of drought or floods.

In the business world, the financial system plays a very important role, since it will determine the economic situation of the working entity, thus being able to establish a point of equilibrium where there is a benefit for both shareholders and employees. For this reason, profitability is a benefit obtained in an economic action in which material, human and financial means are mobilized.

According to Gitman (2003). He says that "profitability is the relationship between income and costs generated by the use of the company's assets in productive activities, and this can be evaluated in reference to sales, assets, capital or shareholder value".

For this reason, it is necessary to understand the concept of profitability, which although it is used in a very varied way and there are many doctrinal approaches that affect one or another facet of it, in a general sense it is denominated as the measurement of the yield that in a certain period of time the used capitals produce, this supposes the comparison between the generated income and the managed means with the purpose of allowing to obtain alternatives that create efficiency.

Considering that one of the main objectives of any company is profitability, its management does not escape from the risks that must be managed in order to avoid or minimize them.

Profitable management implies not only avoiding losses, but also allows obtaining a profit margin on costs and general expenses incurred by the company, while measuring the effectiveness of management, determined by the profits obtained at the end of the economic period, either by sales or by the use of investments.

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