760
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 760 • Career Explorations A

What is the best definition of profit?

Answer
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.

Explanation

Profit is what remains when a business subtracts its expenses from the money it earns through its activity. For example, if a business earns $1,000 and spends $700, its profit is $300. Choice D gives this definition; choices A, B, and C describe concepts related to producing or selling one additional item.

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