What is the best definition of profit? A. Profit is the possible income from producing an additional item.
B. Profit is the price of producing one additional unit of a good.
C. Profit is the additional income gained from selling an additional good.
D. Profit is the financial gain from business activity minus expenses.
Question & Answer
What is the best definition of profit?
1 Answer
Verified archiveThe best definition of profit is:
D. Profit is the financial gain from business activity minus expenses.
Explanation: Profit represents the money that remains after all costs of running a business, including expenses like wages, materials, and overhead, have been subtracted from total revenue. It’s a measure of the financial success of a business, indicating how effectively it can generate income relative to its costs.