Final answer:
Profit is the difference between total revenue and total cost. It represents the financial gain that a business achieves after deducting all expenses. Making a profit is the primary objective of any business.
Step-by-step explanation:
A business owner wants to know about profit because it is the measurement that determines whether their business stays operating or not. Profit is the difference between total revenue and total cost. It represents the financial gain that a business achieves after deducting all expenses.
Making a profit is the primary objective of any business. It enables the business owner to recoup their investments, generate income, and potentially expand their operations. Profitability is a key indicator of business success and sustainability
For example, a business owner may want to know if they are making enough profit to cover their costs and make a reasonable return on their investment. They may also want to compare their profit margins with industry benchmarks to assess their performance and competitiveness.