PROFIT Definition : In words of prof . Knight , “Perhaps no term of concept in economic discussion is used with a variety of well-established meaning than profit .”Some writers have defined it as the percentage returns on investment of capital ,while others have called it the reward of ownership .

TYPES OF PROFIT Gross profit : Gross profit is the surplus which accrues to a firm when it subscribes its total expenditure [ explicit expenditure ] from its total receipts .a) It includes:b) Remuneration c) Chargesd) Extra personal profit

Net profit :Net profit is ‘reward’ of entrepreneurship only .Its is return to entrepreneur supply remainder after excluding the remuneration of all other factors charges dividends. a) Reward for co-ordination b) Reward for Risk – taking c) Reward for Innovation