Profit is a term that refers to the positive difference between revenue and costs. In case of negative values it is a loss. Profit is a synthetic indicator of the efficiency of business activities. In profit are reflected all factors of succesful entrepreneurship.
The amount of profit is bound to increase a business value for the owner, and ability and level of expanded reproduction.
Use of Profit in practice: in business it is used by CFO for monitoring the efficiency of business activities. It is used in a wide range of indicators (ratios).
Related terms and methods:
- Cash Flow
- Entrepreneur
- Financial analysis
- Profit categiores (forms)
Related management field:
Related discipline:
Related profession:
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