This article provides information about “Is Profit Maximisation a Sole Objective of Business?”: In order to fully understand the objectives of business, it is important to discuss one more aspect, namely, the profit objective of business. It is generally believed that business activity is carried on with the sole objective of maximising profit. In this […]
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What is the difference between normal profit and super normal profit? Profit is the reward for entrepreneurial function. Gross profits are the surplus revenue over and above explicit costs. Net profit is the excess of gross profit over explicit and implicit cost.
Profit: What are the important constituent of profit? Profit is a residual income. It is the income over and above the cost of production. Profits emerge as a reward for the function of an entrepreneur. An enterprise worthy of getting.
What is the difference between gross profit and net profit? Production is possible by the united efforts of four factors of production viz. land, labour, capital and organization. The whole of income or total revenue earned by firm is divided among four factors of production.