Concept in Definition ABC

Profit that is achieved from something or someone

Profit will be called the profit or benefit that someone can obtain from something, a good, an object or someone. For example, commercial companies have profit as their main purpose and rationale, that is, through their activity, to extract a specific economic benefit from it..
People also often make a profit from personal property that they own. They lease them and in this way obtain a concrete profit from them.

A company will be considered profitable when its income total costs exceed those total costs, both of production as distribution. Meanwhile, when the opposite occurs, that is, when expenses and costs are the ones that prevail in the balance of trade, then, we will have to talk about a loss scenario in which profit will be impossible to obtain.

Economic activity is always for profit

Now, all economic activities have the purpose of obtaining a profit, that is, of making profit, since it is necessary to achieve the

resources necessary to maintain the activity in question, which includes employees, structural expenses, mobility, among others, and also to meet the needs of those who run the company or company.

The other side: non-profit organizations

On the opposite sidewalk we meet at organizations or non-profit associations, which are called precisely like that because they do not pursue with their activity the obtaining of any economic benefit, they are only moved by altruism, the achievement of the common good and the welfare of the group they represent or protect.
Charitable associations are clear exponents of this type of non-profit group. They offer their selfless help to those who need it because they find themselves in a situation of exclusion and they do so by bringing them closer to everything they demand to overcome that state of destitution or catastrophe.

Profit spirit

On the other hand, the term profit corresponds to a concept widely spread in the field of right. Because for example, the profit motive It is the intention that a person observes to be able to increase her patrimony through a legal act. Of course, as any matter within the law, it will be regulated through the signing of a contract.
This figure is extremely important at the request of the law because it allows the configuration of criminal actions of recurrent development such is the case of scams, fraud and the illicit enrichment of officials public.

Fraud is one of the most common economic crimes in societies and one of the oldest by the way. Its commission is punishable by all the laws of the world.
For its part, the case of the illicit enrichment of public officials is also a situation that occurs frequently. Coming to power, unfortunately, tempts many officials who cannot resist the possibility of generating a business as a result of their position and public office.
It is also punishable by law but we must say that in most cases it is a difficult crime to prove due to the protection that governments usually give their officials accused of this crime.

Loss of profit

Another of the concepts linked to the term and to the area that concerns us is that of loss of profit. Loss of profit will be considered to be the patrimonial damage that is generated as a result of the loss of a economic utility, or failing that, of a legitimate profit after the occurrence of a situation harmful. In other words, loss of earnings is that which has not been earned and that in fact would have been achieved if the unfortunate damage in question had not occurred.

To confirm that we are specifically facing a scenario of loss of profit, it will be enough to determine that there is indeed a certain prospect of profit.

If I work using Internet and this turns out to be the main tool that I have to generate my income, then, suddenly, the service of the same that I have hired falls for two days, obviously this situation will hinder the development of my work making it impossible comply. If I was able to prove reliably that my income was affected and severely decimated by that cut, I could demand from the company providing the service a compensation for the lost profits that it caused me and in this way recover costs from my loss of income.

Whether the compensation is a fact will depend fundamentally on whether I can prove the loss of earnings and the direct relationship with the damage caused. It will also be necessary to be able to demonstrate what was not received economically as a result of the failure of the service.

Profit Topics