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:
“The term preschooler signals another change in our expectations of children. While toddler refers to physical development, preschooler refers to a social and intellectual activity: going to school. That shift in emphasis is tremendously important, for it is at this age that we think of children as social creatures who can begin to solve problems.”
—Lawrence Kutner (20th century)