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Define the term- profit
The term "profit" can be used in two senses. As an owner-oriented concept it refers to amount and share of national income that is paid to owners of business, which is, those who supply equity capital. As a variant it's termed as profitability. It's an operational concepts and signifies economic efficiency. Or we can say, profitability refers to a situation where output exceeds input, which is, value created by the use of resources is more than the total of input resources.
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