Profit


Profit, comes from the Latin lucrum, is the gain or benefit obtained from something. The purpose of commercial businesses is profit, that is, some economic benefit.

When dividends are given through total income and these exceed the total costs of production and distribution. It assumes, in other words, that the company earns more money than it spends. Otherwise, instead of not making a profit, the company would make a loss.

The profit motive is the intention of a person to increase their capital through a legal act. This intention is usually regulated through the signing of a contract.

The loss of profit represents what the company has stopped earning in the face of the damaging event, such as: the damage of some machinery.

Compensation obtained due to the occurrence of an unfortunate event will be granted provided that the loss of earnings and its direct relationship with the damage can be verified. On the other hand, it is necessary to be able to determine economically what has not been received.