What is profit?

Profit is the business achievement of entrepreneurs, the comprehensive reflection of the business effect of enterprises and the concrete embodiment of their final results. The essence of profit is the manifestation of enterprise profit and the labor achievement of all employees. Enterprises make profits by producing high-quality goods for the market. Compared with surplus value, profit is not only the same in quality, but also the same in quantity. The difference of profit is that surplus value is for variable capital, and profit is for all costs.

Therefore, once income is converted into profit, the source of profit and the material production it reflects will be earned (The Complete Works of Marx and Engels, Volume 25, page 56), so it has many forms of making money. In capitalist society, the essence of profit is the product of capital, which has nothing to do with labor. Profit is the life of capital, and capital pursues profit maximization.

Extended data:

Quality characteristics of profit:

(1) A certain profitability. It is the final financial achievement of an enterprise in a certain period of time.

(2) The profit structure is basically reasonable. Profit is measured according to the principle of proportion, which is the result of subtraction of income and expenses in a certain period of time.

(3) The profit of an enterprise has a strong ability to obtain cash.

(4) The factors affecting profit are complex, and the calculation of profit includes subjective judgment, and the result may vary from person to person, which is operable.

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