as income from enterprise activity results from sales after subtracting all costs (including personal use). Profit raises the capacity; losses reduce it. Profits – together with income from non-independent activity (wages [Pay] and salaries), rents, and leases, as well as interest – are part of the national income.
In economic theory, the term profit is more narrowly conceived. A distinction is made between management ¶ income, interest on invested capital, risk premium, and economic profit. With personal enterprises, the owner contributes his …