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.
Frequently asked questions
What is the correct answer to this question?
When income is more than expenses
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
