Everything in the world is result-oriented and a firm too is not an exception to it. Therefore, the goal of a firm is to maximize profits. Profits and profitability play the same role in business as ‘blood’ and ‘pulse’ in the human body. The survival of a human being is not possible in the absence of adequate blood and the ability to generate blood. The same may be applied to business. It is very difficult for a firm to survive without the prospects and the ability to earn adequate profits. Profits and profitability are, therefore, the nerve-knot of a business failing which the existence of a firm is like a body without the backbone.