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Profit is a financial term that refers to the surplus or excess gained from a business activity or investment, after deducting all the related expenses, costs, and taxes. It represents the positive outcome or net gain achieved through commercial activities.
Profit is a fundamental metric used to evaluate the financial success and efficiency of a business. It is typically expressed in monetary terms and can vary in its form, such as gross profit, operating profit, or net profit, depending on the level of deductions made. Gross profit refers to the revenue earned minus the cost of goods sold, while operating profit includes all operating expenses, excluding taxes and interest. Net profit, on the other hand, is the ultimate result after subtracting all expenses, taxes, and interest.
Profit plays a crucial role as an indicator of a company's ability to generate revenue and effectively manage costs. It allows businesses to measure their financial performance, attract investors, and determine their sustainability and growth potential. Additionally, profit acts as a reward for entrepreneurship, risk-taking, and successful decision-making.
However, while profit is often pursued by businesses, it should not be mistaken as a sole determinant of success. Other factors like cash flow, customer satisfaction, and long-term growth dynamics are equally important for the overall prosperity and stability of an organization.
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• Gain; advantage; emolument; the difference in favour of the seller between the cost and selling price of commodities; improvement.
• To benefit; to improve; to gain advantage; to receive profit; to become wiser and better; to bring good to.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
The word "profit" is derived from the Latin word "proficere", which combines the prefix "pro-" (meaning forward or onward) and the verb "facere" (meaning to make or do). In Latin, "proficere" primarily meant "to make progress" or "to advance". Over time, the meaning of the word evolved, and in Late Latin and Old French, it began to specifically refer to financial gain or benefit. This transformation eventually led to the English word "profit" as it is used today, indicating financial surplus or the excess of revenue over expenditure.
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CONDITIONAL PERFECT PROGRESSIVE
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