Answer:
A profit is the money a business:
earns after paying expenses.
Step-by-step explanation:
For a business entity, the profit is the excess of the money that the entity earns after deducting all of the expenses incurred in running the business from its revenue. There are many levels at which profit can be ascertained. For example, the gross profit is the excess of revenue over costs of goods sold. It is not the same as contribution margin, which the excess of revenue over variable costs. We also have operating profit as another level of profit. It is the profit generated from operating activities only. Another important level of profit is the net income or profit. This is mostly determined after paying company income taxes. It is the profit which can be distributed to stockholders and other stakeholders.