Other Applications of The Term
The social profit from a firm's activities is the normal profit plus or minus any externalities or consumer surpluses that occur in its activity. A firm may report relatively large monetary profits, but by creating negative externalities their social profit could be relatively small.
Profitability is a term of economic efficiency. Mathematically it is a relative index – a fraction with profit as numerator and generating profit flows or assets as denominator.
Read more about this topic: Profit (economics)
Famous quotes containing the word term:
“Mr. Roosevelt, this is my principal request—it is almost the last request I shall ever make of anybody. Before you leave the presidential chair, recommend Congress to submit to the Legislatures a Constitutional Amendment which will enfranchise women, and thus take your place in history with Lincoln, the great emancipator. I beg of you not to close your term of office without doing this.”
—Susan B. Anthony (1820–1906)