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What is Profit
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.

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.

What means the profit in practice?

Profit is absolutely crucial indicator of the success of the business. The company, which does not make a profit is lost and lives at the expense of someone else. Profit helps the company to develop and you can use it to finance comapny investments.

In practice, however, we have many types of the profit - depending on the content (operating profit, net profit, earnings per share). So if we are talking about profit, it is always necessary to know which one we mean.

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Last update: 11.04.2016

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