MAKE PROFIT Meaning and
Definition
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The term "make profit" refers to the financial gain or benefit obtained by an individual, business, or organization after deducting the total expenses incurred from the total revenue generated from their activities within a specific period. It represents the surplus amount earned by an entity that exceeds its costs and investments.
When an individual or a business "makes profit," it implies that they have successfully generated revenues higher than their total expenses. Profit is a primary indicator of financial success and is often utilized as a measure of a company's efficiency and performance. It serves as a vital metric in assessing the financial viability and sustainability of an entity.
To make profit, a company typically engages in economic activities such as buying and selling goods or services, investments in assets, or engaging in various business operations. Profit is calculated by subtracting expenditures, such as cost of goods sold, operating expenses, taxes, and interest, from the total revenue generated from sales or business activities.
Maximizing profit is often a central goal for businesses, as it ensures the long-term growth and survival of the organization. It enables businesses to reinvest back into their operations, develop new products, expand into new markets, reward stakeholders, and sustain employment. However, it is essential to note that making profit should be achieved ethically and within legal boundaries, considering the impact on customers, employees, society, and the environment.
Common Misspellings for MAKE PROFIT
- make profyt
- make profat
- make profmt
- make profht
- make profi4
- make profid
- make profip
- make profiv
- make profiu
- m ake profit
- ma ke profit
- mak e profit
- make pr ofit
- make pro fit
- make prof it
- make profi t
Etymology of MAKE PROFIT
The etymology of the word profit can be traced back to the Latin word proficere, which means to make progress or to advance. In Latin, pro means forward and facere means to do or to make. Over time, this Latin term evolved into the Old French word profit, which eventually entered English in the 14th century with the same meaning of financial gain or benefit. Therefore, when we say to make profit, we are essentially expressing the act of making financial progress or gaining benefit.
