When will a firm make a profit? It is difficult to answer this question because it depends on the industry and the type of business. In general, firms can expect to turn an annual profit when they have paid off all their initial costs, such as purchasing equipment or building up inventory; but for some industries, that goal may take decades. For example, in pharmaceuticals, companies need millions of dollars worth of research before they see any profits from product sales-and many never do! -a firm will make a profit when, -in general, firms can expect to turn an annual profit when they have paid off all their initial costs; but for some industries, that goal may take decades. For example in pharmaceuticals companies need millions of dollars worth of research before they see any profits from product sales and many never do! -the factors that affect the timeline are: industry and type of business. This is because it depends on how quickly the company has enough revenue coming in to pay its expenses. There is no simple answer as every company’s situation differs based on risk tolerance level and what stage of growth or decline it is currently experiencing. A company might not be profitable yet due to rapid expansion such as
