Profit

Definition

Profit refers to the financial gain made by a business after deducting all expenses from its total revenue. It represents the reward for taking risks and successfully running a business.

Related terms

Revenue: The total income generated by selling goods or services before deducting any expenses.

Fixed Costs: Expenses that do not change regardless of how much output a business produces.

Marginal Cost: The additional cost incurred when producing one more unit of output.