What is profit?
Answer and explanation
Correct answer: Amount left after subtracting expenses from income
Profit is the positive surplus remaining when total business revenue or income is greater than the relevant costs and expenses. It can be expressed simply as profit = income minus expenses. Thus option A is correct. Total expense is a cost, a loan is finance, and money without a business transaction is not automatically profit.
Frequently asked questions
What is the correct answer to this question?
Amount left after subtracting expenses from income
Why is this the correct answer?
Profit is the positive surplus remaining when total business revenue or income is greater than the relevant costs and expenses. It can be expressed simply as profit = income minus expenses. Thus option A is correct. Total expense is a cost, a loan is finance, and money without a business transaction is not automatically profit.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
