Project 2 - Factors affecting a business's profit

Net profit

- any money left over after expenses have been deducted from gross profits, also called net income

Profit Motive

- individuals or societies gaining the maximum amount out of the resources they have available to them

Income

- the actual amount of money earned of received during a given period

Gross profit

- the difference between sales and revenue and the cost of goods sold

Profit

- the money left over after a business has paid the cost of providing its goods and services

Cost of Goods Sold

- the total original price of all goods sold during a fiscal period

Expenses

- amount of money used to buy or do something

Operating Expenses

- also known as overhead, the costs of running a business, such as wages and salaries of employees, rent, utility charges, and taxes