Question

What is the best definition of profit?

Answer 1

Profit can be defined as the financial gain resulting from the difference between the amount earned and the amount spent. It is usually calculated as revenue minus cost and is considered to be one of the key performance indicators for businesses and organizations. A profit indicates that a company is generating more revenue than it is spending, and therefore, it has money left over to invest in growth, pay shareholders, or reinvest in the business. There are several types of profit, such as gross profit, net profit, operating profit, and so on, depending on what expenses are taken into account. In general, profit is a measure of the efficiency and success of a business and is a crucial metric that investors, shareholders, and managers look at when evaluating the financial health of a company.

Answer 2

Profit can be best defined as gain, especially when achieved by increasing the price of goods so the money paid by consumers outweighs the cost for the producer, leaving a sizeable return on what has been paid out. Once expenses and costs have been covered, profit is the money left over.