What is Profit?

The term profit is used mostly in business to describe when once you take all money from sales and subtract out all of your costs if there is any money left that is the profit. Of course in some instances you actually spent more than you earned and that is described as a loss. For many businesses they do not see a proft for their business for the first couple of years so it it very important that the owner plan for this throught personal investment or loans.