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What is the correct meaning of profit in business?

Answer and explanation

Correct answer: The amount left after subtracting total cost from total income

Profit is the positive surplus remaining when total revenue or income exceeds the total costs incurred to earn it. In simple form, profit equals total revenue minus total cost; if the result is negative, it is a loss rather than profit. Total cost, borrowed money, and number of sales are different financial or operating measures. Therefore, option A is correct.

Related tags

ProfitCostIncomeConceptCharacteristics And Objectives Of BusinessConcept Characteristics And Objectives Of BusinessBusinessTrade And CommerceBusiness Trade And CommerceBusiness Studies

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