The profit motive prevents private companies from deciding to produce public
Profit means the amount gained by selling a product, which should be more than the cost price of the product. It is the gain amount from any kind of business activity. In short, if the selling price (SP) of the product is more than the cost price (CP) of a product, then it is considered as a gain or profit. It describes the financial benefit obtained if the revenue from the business activity exceeds the taxes, expenses, and so on, which are involved in sustaining business activities.
There are 3 types of profit -Gross Profit, Operating Profit, Net Profit Gross profit is the amount gained by any business or company after removing the cost associated with the making and selling of the product from the selling price. = Gross Profit = Total Sales – COGs. Operating Profit is a business’s operating profit tells what is the contribution of the company’s operations to its profitability. Gross Profit – Operating Expenses. Net Profit is Net profit includes all the cost amount generated by the business as revenue. Net Profit = Operating Profit – (Taxes and Interest)
Produce is referred as many farm-produced crops, including fruits and vegetables. More specifically, the term produce often implies that the products are fresh and mainly the same state as where and when they were harvested.
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