One of the most important functions of business is to sell goods and services for profit. In the economic view of the firm, business decision makers are assumed to desire as large a profit as possible for their organization, and a good society develops conditions for businesses to produce and sell valuable products and services as efficiently as possible to increase the quality of human life. In this economic view, opportunities to make profit are signals that society’s resources can be used more efficiently. This entry examines types of profits and some of profit’s related legal and ethical concerns.

Types of Profit

For a business, profit refers to the amount of revenue it receives from customers in excess of the costs it incurs over a defined period ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles