Financial Glossary


Profits are the primary aim of any financial transaction and any business activity including that of organizations. Profits are rewards for excellent financial or business activity in the form of net revenue after the setting of all expenses in many ways. It includes costs for raw materials, labor, interest on debt, taxes, and others.  And for anyone to aim for profits by cutting costs and increasing revenues is the simple way to make profits. The three types of profits of organizations are gross profit calculated after deducting direct expenses, operating profits that arrive after deducting operating expenses from gross profits, and net profits are after deducting all costs.

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