What is the meaning of profit?
Answer and explanation
Correct answer: Income being greater than expenses
Profit is the positive excess that remains when the income or revenue earned by a business is greater than the expenses or costs incurred to operate it. For example, if receipts are ₹10,000 and total costs are ₹7,000, the profit is ₹3,000. If costs exceed income, the result is a loss, not a profit.
Frequently asked questions
What is the correct answer to this question?
Income being greater than expenses
Why is this the correct answer?
Profit is the positive excess that remains when the income or revenue earned by a business is greater than the expenses or costs incurred to operate it. For example, if receipts are ₹10,000 and total costs are ₹7,000, the profit is ₹3,000. If costs exceed income, the result is a loss, not a 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.
