What is defined as the amount remaining after expenses have been deducted from income?

Profit is defined as the amount remaining after all expenses have been deducted from income. It represents the financial gain a business has made during a specific period of time and is an essential indicator of business performance. When a company's total revenues exceed its total expenses, it results in a profit, which is a key objective for most businesses. Understanding profit is crucial for evaluating the success of a business's operations and for making informed decisions about future investments, expansion, or cost management.

In the context of business studies, revenue refers to the total income generated from sales before any expenses are taken into account, while loss occurs when expenses surpass income, resulting in a negative financial outcome. Investment typically refers to the allocation of resources, usually financial, into a project or enterprise with the expectation of generating a return. Therefore, the correct understanding of profit as the net gain after all deductions emphasizes its importance in assessing a business's viability and sustainability.