Answer :
Final answer:
The profitability of a business is influenced by factors such as financial capital, the economic environment, and business ethics. Finance and accounting also play significant roles in business operations.
Explanation:
The factors that influence business profitability can include financial capital, the process of borrowing and selling corporate stock, and the overall economic environment. Financial capital impacts profitability in that businesses need capital in order to invest and expand, which can increase profitability. Businesses source this capital through borrowing, issuing bonds, or selling corporate stock as described in section 8.1 'The Fact-Value Distinction' and section 8.2 'Basic Questions about Values'. The economic environment also plays a role as per chapter 18.1 'Economic Systems' and 18.2 'Globalization and the Economy'
Ethics plays a crucial role in business as covered in our e Textbook's 19th Ed. modules 10.3 'Business Ethics and Emerging Technology' and 9.1 'Requirements of a Normative Moral Theory'. Companies that place a high emphasis on ethical conduct are likely to fare better with customers and stakeholders, which can improve profitability.
Finance and accounting form the foundations of any business' operation. Financial management involves the planning, direction, and control of financial resources, while accounting relates to the process of summarizing, analyzing, and reporting these resources detailed in sections relating to 'financial capital', 'the purpose and process of borrowing, bonds, and corporate stock'.
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