
Profit
Profit is the financial gain a business makes after subtracting all expenses from its total revenue. It reflects the company's ability to generate more money than it spends, serving as an indicator of financial health and success. When revenue exceeds costs, the difference is profit, which can be used for reinvestment, growth, or rewarding owners and investors. Conversely, if expenses surpass revenue, the business incurs a loss. Profit is essential for sustainability, providing resources for future initiatives and signaling effective management.