Question

What is profit?

Hint:

Profit is essential for business growth and sustainability. It reflects the success of business operations.

Answer 1

Step 1: Understanding profit.
Profit is the financial gain obtained when the revenue from goods or services exceeds the expenses or costs incurred in producing them. It is the difference between total revenue and total cost.

Step 2: Conclusion.
Thus, profit is the reward for the risk-taking and entrepreneurial activity involved in producing goods and services.