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When does profit occur?

Answer and explanation

Correct answer: When income is more than expenses

Profit is the positive surplus left when business revenue or income exceeds the relevant costs and expenses for the period. For example, if income is 10,000 and expenses are 8,000, the difference of 2,000 is profit. If expenses exceed income, the result is loss. No sales or dissatisfied customers do not describe a profitable condition.

Related tags

ProfitIncomeExpensesBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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