Profit

:For the television series see Profit (TV series)

Related Topics:
Television series - Profit (TV series)

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Profit is defined as the residual value gained from business operations. However, the exact method of calculation differs between accountants and economists. Political economists may define profit in still other ways. Sidney Hook defined it as the cash value of unpaid labor, i.e. the value of all production after the breakeven point. This avoids deeply vague terms like "residual" and "gained."

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Profitability refers to the amount of profit received relative to the amount invested, often measured by a rate of profit or rate of return on investment.

Related Topics:
Rate of profit - Rate of return on investment

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Economists and accountants measure profit in slightly different ways, profit will only be the same when all the factors of production have been credited their full opportunity cost.

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The pursuit of profit should result in society improving as resources become more effectively allocated towards what people want. Unfortunately this is only true if all the impacts on other people are correctly costed. This is difficult in the case of common goods such as the environment, and purely social resources such as love.

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