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    Profit

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    Anonymous O1Q6Md
    There are different definitions of profit, as the term is used with varying meanings in economic discussions. Some define profit as the percentage return on capital investment, while others view it as the reward of ownership. There are two main types of profit: gross profit, which is the surplus remaining when total expenditures are subtracted from total receipts, and includes remuneration, charges, and extra personal profit. Net profit is considered the 'reward' for entrepreneurship alone, and is calculated as the return to the entrepreneur after excluding payment to other factors of production, charges, and dividends. It rewards entrepreneurs for coordination, risk-taking, and innovation.

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    Profit

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    Anonymous O1Q6Md
    96 views3 pages
    There are different definitions of profit, as the term is used with varying meanings in economic discussions. Some define profit as the percentage return on capital investment, while others view it as the reward of ownership. There are two main types of profit: gross profit, which is the surplus remaining when total expenditures are subtracted from total receipts, and includes remuneration, charges, and extra personal profit. Net profit is considered the 'reward' for entrepreneurship alone, and is calculated as the return to the entrepreneur after excluding payment to other factors of production, charges, and dividends. It rewards entrepreneurs for coordination, risk-taking, and innovation.

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    Profit

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    There are different definitions of profit, as the term is used with varying meanings in economic discussions. Some define profit as the percentage return on capital investment, while others view it as the reward of ownership. There are two main types of profit: gross profit, which is the surplus remaining when total expenditures are subtracted from total receipts, and includes remuneration, charges, and extra personal profit. Net profit is considered the 'reward' for entrepreneurship alone, and is calculated as the return to the entrepreneur after excluding payment to other factors of production, charges, and dividends. It rewards entrepreneurs for coordination, risk-taking, and innovation.

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    © All Rights Reserved
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    96 views3 pages

    Profit

    Uploaded by

    Anonymous O1Q6Md
    There are different definitions of profit, as the term is used with varying meanings in economic discussions. Some define profit as the percentage return on capital investment, while others view it as the reward of ownership. There are two main types of profit: gross profit, which is the surplus remaining when total expenditures are subtracted from total receipts, and includes remuneration, charges, and extra personal profit. Net profit is considered the 'reward' for entrepreneurship alone, and is calculated as the return to the entrepreneur after excluding payment to other factors of production, charges, and dividends. It rewards entrepreneurs for coordination, risk-taking, and innovation.

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    PROFIT

    Definition :
    In words of prof . Knight , Perhaps no
    term of concept in economic discussion is used with
    a variety of well-established meaning than
    profit .Some writers have defined it as the
    percentage returns on investment of capital ,while
    others have called it the reward of ownership .

    TYPES OF PROFIT
    Gross profit : Gross profit is the surplus which
    accrues to a firm when it subscribes its total
    expenditure [ explicit expenditure ] from its total
    receipts .
    a) It includes:
    b) Remuneration
    c) Charges
    d) Extra personal profit

    Net profit :Net profit is reward of entrepreneurship


    only .Its is return to entrepreneur supply remainder
    after excluding the remuneration of all other factors
    charges dividends.
    a) Reward for co-ordination
    b) Reward for Risk taking
    c) Reward for Innovation

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