Profitability in companies. i dont get it. pls explain.

Rajah (Namesake Director) (67 Points)

12 January 2012  

Hello People

When the inflation is between 10-15%(unofficially...dont ask where I pulled this figure out but I've read this somewhere online atleast a couple of times recently ) why do businessmen do business when the net profit margin is below 15%? I'm not accounting champ or from the commerce background but am just a regular guy doing business. My personal view is that it does make sense to do business if you dont make atleast 5% inflation adjusted returns.

Am I thinking right?

Thanks

Raj