If archangels instead of businessmen sat in directors’ chairs, they would still have to be concerned with profitability, despite their total lack of personal interest in making profits.
If the financial result is positive, it is a profit. To make a profit is a key objective of any enterprise operation in the private sector. High levels of profit allow either reinvest into the business and its development, or paying the owners and shareholders.
If the financial result is negative, it is a loss. If the enterprise is for a long time in loss, it exhausts its financial resources and must stop doing business.