Title: Explain the concept of profit.
Course: Make It Your Business (12151-12) > Section: Developing a Financial Plan

Explanation should include

- definitions of profit, gross profit, net profit, income, and expenses
- the concept that profit is the money left over after all expenses have been paid
- examples of how profit drives business (e.g., by reinvesting in business).

Process/Skill Questions:

- What are examples of expenses that affect a business owner’s profits?
- What effect does profit have on business survival?
- How does the motive for greater profits affect the quantity of supply?
- How can the environment affect profits?